Rhodia to cease operation at its Canadian polyamide production line

Specialty chemicals maker Rhodia announced to discontinue operation of its polyamide-based engineering plastics production line in Mississauga (Ontario, Canada) as the firm grapples with reduced demand and capacity glut worldwide. The manufacturing of nylon 6 and nylon 6.6 Technyl® brand portfolio will be transferred to plastics compounder Alloy Polymers (USA), within a tolling agreement. Rhodia’s Mississauga site will continue production of surfactants and polymers sold by Novecare Enterprise. In Q1 - 2009, Rhodia saw a 32% YOY drop in polyamide sales volumes led by crisis in the automotive and construction markets in all geographic zones. In addition, the company absorbed costly raw material inventories with an impact of EUR 70 mln on the bottom line.
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