German nylon producer Domo Chemicals is planning to spend €12 million on building a nylon compounds plant in China.

The company signed a contract with the Pinghu DuShan Port Economic Development District on Feb. 20 for the project, which will include multiple production lines. In a first stage, Domo will build capacity for about 25,000 t/y with production expected to start in the fourth quarter of 2020.

The plant will be located in the port area of DuShan Pinghu city in Zhejiang province, close to Shanghai, and will also house R&D and sales functions. It will mainly develop and produce modified engineering plastics such as nylon 6, nylon 6.6 and high temperature nylon, which are seeing rising demand in the automotive, electronics and consumer industries.

Domo’s vice president global engineering plastics Ludovic Tonnerre said the company has only been operating in China since 2015 but is growing rapidly. “Despite the current coronavirus challenges, we are confident that China will lead the world in embracing a future generation of sustainability and e-mobility solutions,” he said.

The Leuna-based firm added that it sold 6,000 t of engineering nylon compounds to diverse local applications in China last year.