DuPont and Asahi Chemical announced
on October 3 that they have signed a long term agreement
under which DuPont will supply Asahi Chemical with hexamethylenediamine
(HMD), nylon intermediate product.
DuPont will supply the total 250,000
tons of HMD in 16 years from its global manufacturing
base which will include the recently announced joint
venture facility in Asian Pacific with BASF of Germany.
The two companies have been discussing cooperation in
the nylon business since 1993. The agreement is the
outcome of this discussion, and both companies will
continue to proceed on finding ways to cooperate.
Asahi views its nylon business as one
of its core business, having a complete production line
in Nobeoka city, Miyazaki prefecture covering from raw
materials to Fibers and Resins, with annual production
capacity of 100,000 tons of nylon 66 (AH) salt. However
HMD, the other primary raw material beside Adipic Acid,
is operating under full capacity. The long term supply
agreement with DuPont will secure its supply necessary
to expand the nylon business of Asahi.
DuPont has been building an integrated nylon
business in Asia Pacific since the early 1990’s. Elements currently
in place include wholly-owned facilities such as an adipic
acid plant and ZYTEL polymer unit in Singapore, fiber facilities
in Australia, and compounding facilities in Japan, Korea,
and Singapore. Several joint ventures have also been created
as a part of DuPont’s plan, including the production of AH
salt and polymer in China and nylon fiber and fabric ventures
in Japan, Taiwan, India, and China. The nylon intermediate
supply agreement with Asahi will support to build DuPont’s
world scale nylon intermediate facilities in Asia.
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