(Yicai) July 18 -- Zhejiang NHU will invest CNY10 billion (USD1.3 billion) to construct a factory for engineering plastic nylon and key raw materials in Tianjin, including adiponitrile, a high value-added intermediate chemical that has long been monopolized by a handful of overseas companies.

NHU will use its own independently developed technology to produce high-value-added intermediate chemicals adiponitrile and diaminohexane for nylon production, the Shaoxing-based company said yesterday. 

The first phase of the factory, costing CNY3 billion (USD413 million), will produce 100,000 tons of each of the two chemicals each year, it said. The main raw material used will be butadiene.

The second phase, costing CNY7 billion, will produce 400,000 tons of adiponitrile and diaminohexane each year once up and running. There will also be a polymerization reaction unit with an annual production capacity of 400,000 tons of nylon 66. No timetable for the construction was given.

The project will help break the monopoly of foreign chemical companies, said NHU, which mainly makes vitamins and polymer materials. It will drive the agglomeration and upgrading of the regional new materials industry and help the company expand its main business to the new materials market to boost its competitiveness in the nylon products industrial chain.

NHU’s share price [SHE:002001] closed up 0.8 percent at CNY20.50 (USD2.80) today. 

Editor: Kim Taylor