Russia's growing nylon demand aids growth of caprolactum

07-Jul-07

Domestic demand in Russia, especially that of caprolactam, is expected to rise, exerting pressure on production of caprolactam and nylon in Russia in the next few years. Caprolactam capacity is projected to rise by over 60% in the next few years, as demand is estimated to jump from last years figure of 180,000 tons to 300,000 tons in 2010. Strongest growth will be in caprolactam used as feedstock for nylon production. OAO Kuibyschevazot's third nylon plant, with 23,000 tpa capacity is due onstream in 2008, increasing the company's granulate capacity to 95,000 tpa. Construction of another plant is being studied and could result in a rise in capacity to 140,000 tpa by 2010. OAO Azot is to rebuild a caprolactam plant at a cost of US$29.6 bln, with completion slated for 2009. A large part of production is exported, but domestic demand is also expected to rise. From export levels of over 60% of Russia's total production, caparolactam exports are expected to fall to 45% in 2010. Despite the increase in capacity, imports could continue to rise. As production increases from 1.44 mln tons in 2006 to 1.6 mln tons in 2010, imports will rise from 666,000 to 939,000 tons.