Friday, July, 19, 2024 07:11:30

The construction of the plant is expected to commence in 2020 with operations likely to begin in the year 2022.

INVISTA, one of the world’s largest producers of polymers, fibers and chemical intermediates, has recently inked a memorandum of cooperation (MoC) with the Shanghai Chemical Industry Park (SCIP) to set up adiponitrile (ADN) plant in Shanghai, China.

Sources close to the matter claim that the plant, with a capacity of engineering 400,000-ton adiponitrile (ADN), is currently underway and is estimated to require an investment of over $1 billion (7 billion RMB). Moreover, the construction of the plant, with the support of local authorities, is expected to commence in 2020 while operations are expected to begin by 2022, claim sources.

For the record, adiponitrile (ADN) is a key ingredient in the production of nylon 6,6, a multipurpose polymer used in many applications that effectively improves user’s quality of living. The products application includes high-performance coatings and specialty fibers, engineered plastics, automotive airbag fabric and more.

Reportedly, the MoC was signed in the presence of Wu Qing, Vice Mayor, Shanghai Municipal Government, Jeff Gentry, Chairman & CEO, INVISTA, Chen Mingbo, Director General, Shanghai Economy Informatization Commission & Deputy Secretary General, Shanghai Municipal Government and Ma Jing, Director General, Shanghai Chemical Industrial Park Administration Commission.

According to a press release, Jeff Gentry said that the company is delighted to sign the memorandum of cooperation and is pleased to take the next step toward deciding the investment and the plant’s location. He said that Shanghai is an ideal location as it will benefit the firm in integrating the new facility into its existing polymer and HMD plants at SCIP.

Furthermore, the received cooperation and support from SCIP and the Shanghai government to advance this project has given the company great confidence in working together to meet future milestones, said Gentry.

According to reliable sources, INVISTA, under the MoC, will develop its internal decision-making process with strong support from the Shanghai government and SCIP, while committing to intellectual property protections and joint efforts to execute an investment agreement.