Key company officials and local dignitaries were on hand on 15 March in Haiyan, Jiaxing, in China’s Zhejiang province for the start of construction of a compounding plant being built by German polyamide specialist Domo Chemicals (Leuna; www.domochemicals.com).

With a production start set for the end of Q1 2024 in the Haiyan economic development zone south of Shanghai, the EUR 14 mn (RMB 100 mn) facility is to compound the Technyl brand PA grades Domo acquired in 2020 from Solvay. Resin for the compounds is to be supplied from Europe.

Domo said it plans to eventually expand the plant’s initial capacity of 35,000 t/y to 50,000 t/y, with a company spokesperson telling Plasteurope.com in 2022 that the increase is expected in five to eight years.

Beyond adding to the German firm’s competitiveness in the growing Asian polyamide market, the plant is expected to create job opportunities and contribute to the development of the local economy, said Fabrizio Cochi, Domo’s general manager for Asia.

As the development zone is to host manufacturers of electronics, new energy products, new materials, and high-end equipment, Domo said it expects the investment to place it close to customers while playing a key role in expanding its Asian presence. Among other things, the sub-district also aims to become a “hydrogen valley.”

Active in PA resin manufacturing as well as compounding, Domo is also expanding a nearby plant. An initial stage of the company’s plans to raise Chinese output was completed in March 2022 when capacity was pushed to 14,000 t/y from 6,000 t/y.