Plants: Indorama to close PTA plant in Canada; Invista completes nylon 6,6 polymer expansion in Shanghai

Thai-based chemical firm Indorama Ventures has announced that it plans to discontinue operations at its 600,000 tonne/year-Purified Terephthalic Acid (PTA) plant in Montréal-Est, Canada, with preparations for the closure beginning in September 2024.

It adds that the decision comes in response to significant changes in the polyester industry, particularly due to new builds and continued overcapacity in China with majority of it integrated, which have pressured Western producers. “These feedstock cost pressures, along with decreasing demand and the inflationary environment, have led to low utilisation rates and other plant closures in the region,” says Indorama.

In order to be resilient and continue to be cost competitive in light of these structural changes in the industry dynamics, Indorama Ventures adds it has undertaken a strategic review of its portfolio including asset optimisation where necessary. Customers will not be affected by this closure, as Indorama Ventures' production assets in the US and its extensive global footprint will ensure continued competitive and reliable supply solutions, it furthers.

Muthukumar Paramasivam, President/Co-leader of the Combined PET Segment at Indorama Ventures expressed: "We are deeply saddened to make this announcement today. This was an extremely difficult decision, and it was not made lightly. However, it is a necessary step to adapt to challenging market conditions. We extend our heartfelt thanks to all our Montréal-based employees for their dedicated and loyal service since we acquired this asset in 2015. The management team at Indorama Ventures is very mindful of the impact of this decision, and we are committed to mitigating the adverse effects on our employees and the local community.”

Earlier in 2024, the company announced 'IVL 2.0,' signalling a new strategic chapter focused on optimizing financial structures, fostering organic growth, and delivering enhanced value to customers through sustainable solutions. The strategic pillars include optimizing asset utilisation, driving operational excellence, unlocking portfolio value, and maintaining leadership in core markets.

In other news, Invista Nylon Chemicals (China) Co. has announced that it has completed the expansion of its nylon 6,6 polymer site at the Shanghai Chemical Industry Park (SCIP). The site expansion, at a total investment of US$240 million, has doubled the annual capacity of nylon 6,6 polymer to 400,000 tonnes and will be a critical part of maximising the value of Invista’s integrated nylon 6,6 value chain to meet growing demand. It will also provide additional stable local supply and faster market response to facilitate the growth potential of downstream applications, it adds.

Located in SCIP, the expanded polymer site is fully integrated with existing Invista facilities, connecting upstream adiponitrile (ADN) and hexamethylene diamine (HMD) facilities and empowering R&D through its Asia Innovation Centre.

The site deploys Invista's nylon 6,6 polymerisation technology, which uses an aqueous solution method to prepare nylon 6,6 salts without using chemical solvents. This polymerisation technology simplifies the production process, enhances safety and environmental performance, and is more energy efficient than alternative technologies, it claims.

The event was attended by Ruan Li, director general of Shanghai Chemical Industry Park Administrative Committee; Pang Guanglian, executive board member, vice secretary general, China Petroleum and Chemical Industry Federation; and other officials from related Shanghai Municipal Government agencies and representatives of SCIP. Invista senior executives included Nancy Kowalski, executive vice president, Upstream Nylon Global, Invista; Brook Vickery, sr. vice president, Global Operations, Invista; Gary Knight, Chairman of Invista Nylon Chemicals (China); and Kyle Redinger, Vice President, Upstream Nylon Asia Pacific, Invista.

“Invista has been playing a leading role and cooperating with SCIP, as SCIP is developing an advanced and competitive nylon industry base,” said Ruan Li, director general of Shanghai Chemical Industry Park Administrative Committee.

“Invista, as a global leader in the field of nylon, has always stood at the forefront of technological innovation and the market, leading the trend of industry development. The doubling of INVISTA's nylon 6,6 production capacity in Shanghai is not only a strong response to current market demand but also a precise grasp of future development trends,” said Pang Guanglian, executive board member, vice secretary general, China Petroleum and Chemical Industry Federation.

The project’s construction phase used a modular construction approach to reduce the impact on ongoing production and enable smooth business operations while accelerating the expansion project process. Sixty-three modules were built in the module yard and transferred to the site. By pre-building, the construction process also successfully reduced the number of workers onsite and also reduced risk to safety or quality, achieving a cumulative 5 million safe working hours without a lost time injury, it adds.

Invista says its nylon 6,6 polymer, which offers comprehensive performance benefits including excellent resistance to heat, hydrolysis, and abrasion, can replace metal for the production of high-strength, corrosion-resistant, low-density parts. This material can also be used to make popular consumer products such as functional apparel and outdoor equipment, whose demand is rising, commensurate with improving living standards.

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