Asian demand. China is showing the largest growth in consumption, and is increasing imports of both nylon polymer and fibre. Taiwan, meanwhile, is showing a significant increase in caprolactam and nylon capacity. In Korea and Japan, the nylon industry is shifting from fibres towards engineering plastics and film, while in Thailand, India and Indonesia, nylon markets are reviving after the Asian crisis. DSM Fibre Intermediates DSM Fibre Intermediates is one of the world's leading producers of caprolactam, the raw material used to produce nylon 6. A member of the Nylon-6 Promotional Group (NPG-6), DSM has been committed to the caprolactam and nylon business for more than 50 years, and presently has a capacity of more than 500,000 tonnes at plants in the Netherlands, the USA and China. Expansion at its plant in China will increase capacity there to 140,000

Mr. Sim van der Linde, business development manager, DSM Fibre Intermediates

tonnes by 2005.
Nylon 6 is a versatile material that is used in numerous applications, principally as fibres for apparel and furnishing textiles, industrial yarns and floorcoverings, as well as resins for engineering plastics, principally in the electronics and automotive industries, as well as films for food packaging.
Nylon 6 provides a unique set of properties for textile fibres, including: softness and elasticity in hosiery; comfort and strength in cotton/nylon fabrics; elegance and durability in silk-like fabrics; and strength and light weight in sportswear, outdoor fabrics and military outfits.
Nylon 6 is also the most competitive material for bias-ply tyres, and has a number of benefits over both aluminium and nylon 66 when used in air inlet manifolds. Further, the use of nylon 6 film for food packaging, as well as medical and industrial applications, is growing rapidly.
With an overall growth rate of around 2% a year, Nylon 6 will continue to focus on specialities while cheaper materials will be used for commodities. Future market growth will largely be located in Asia, particularly China.
"But if demand increases as predicted, and if we want to achieve a reasonable operating rate, there is only room for about 100,000 tonnes of additional capacity," Mr van der Linde told conference delegates.
He noted that several debottlenecking projects are planned, including the DSM/Nanjing plant in China, the Ube facility in Spain, and the Zilina plant in Slovakia, that together will add sufficient capacity for the anticipated growth in demand. "However, on top of this, two new plants are planned, with the 120,000 tonnes plant of Capro Corp in Korea already under construction.
"The demand developments indicate that there is no room for any new plants," Mr van der Linde concluded. "If these new plants are added to the supply equation, then the overall utilisation rate will remain below reasonable levels, with consequent low prices and low margins. New plants would, therefore, be responsible for a continuing overcapacity and can not be justified. The additional capacity required can be covered by existing facilities."
As a result, DSM expects mergers or alliances between existing producers, the closure of smaller, non-competitive plants, restrictions on additional capacity, and more co-operation along the nylon 6 business chain, both upstream and downstream.
"Changes in the caprolactam industry are both foreseen and needed to sustain the business," said Mr van der Linde. "Our faith in nylon 6 is unaffected by these developments, but co-operation and innovation are key for supplying speciality, non-commodity markets. Nylon 6 remains the most competitive choice for many demanding applications."