Recently, an investor asked Longhua New Materials on the interactive platform about the progress and postponement of its 160,000-tonne-year-old PA66 project in the first phase of construction. Longhua replied that the project was delayed for nearly a quarter due to the delay in obtaining the land use right and force majeure factors. At present, the civil work of each single body of the project has been completed, and the construction of equipment installation, process piping and other projects is being accelerated.
The PA66 project is located in Gaoqing County Chemical Industrial Park, with a total investment of 7.3 billion yuan and a planned annual output of 1.08 million tons of PA66 products. The project is divided into three phases, of which the first phase aims to build a 160,000-tonne-per-year production plant and related supporting facilities, which was originally scheduled to be completed in December 2023. However, due to the later than planned acquisition of land use rights and force majeure, the completion of the project was delayed.
Longhua New Materials is a large-scale enterprise specializing in the R&D, production and sales of polyether polyols and polymer polyols in China. It is a strategic partner with Tianchen Qixiang New Materials, and uses its hexamethylenediamine as a raw material to produce nylon 66, which is an important downstream chain enterprise.
In addition to Longhua New Material's PA66 project, there are other recent developments related to nylon 66. For example, Henan Xinlianxin Chemical Industry Group Co., Ltd. plans to invest 103600 million yuan to build a new chemical material project, including the production of nylon 66. In addition, the hydrogen ammonia project of Henan Shenma Hydrogen Chemical Co., Ltd., located in Henan Pingdingshan Nylon New Material Development Zone, has been completed and put into operation, which is a major supporting project of China Nylon City.
Globally, the nylon 66 market is also active. For example, Ascend announced a worldwide list of polyamide polymers, compounds and monomers, although no specific reasons were mentioned. In addition, INVISTA's global CEO Siqi Fang has visited China several times and expressed his firm commitment to jointly promote the upgrading of the nylon 66 industry chain.
At the same time, the main structure of the newly built 40,000-ton-per-year PA66 project of Yantai China Resources Nylon has been fully capped, which is one of the major projects for high-quality development in Shandong Province.
In general, the nylon 66 industry has shown a positive development trend in the world, and major enterprises have increased investment, expanded production capacity, and promoted the upgrading of the industrial chain. However, project construction and market changes still face various uncertainties, requiring enterprises to pay close attention to market dynamics and flexibly respond to various challenges.