Toyo lands engineering, construction deal on China caprolactam venture

Toyo Engineering Corp. has been awarded a contract for a caprolactam plant for DSM Nanjing Chemical (DNCC), a joint venture company between Royal DSM and Sinopec.

The project aims to build a 200,000 tpy caprolactam unit in Nanjing, China, in addition to existing 200,000 tpy of caprolactam capacity.

After the completion of the new project, DNCC will become the largest caprolactam producer in the world with 400,000 tpy of capacity, officials said.

Toyo will engage in engineering, procurement services and construction management on a lump-sum basis, it said.

The client will invest approximately $ 300million into the project, which is scheduled to be completed in the 2013 third quarter.

Caprolactam, the raw material for a nylon fiber (nylon 6), nylon resin and film, is one of core products for Royal DSM, which has plants in Europe, North America and China and boasts a combined production capability of approximately 700,000 tpy.

With economic development in China, the demand for caprolactam will continue to increase and facility reinforcement this time is aimed to meet the growing market needs., officials said.

In addition, DSM’s latest technology will be applied to this plant for expanding the production scale while saving energy, the company said.

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