INVISTA: short-term and long-term outlook
Recent events have caused many people in the nylon 6,6 value chain to have doubts about the supply of dinitrile raw materials. I am very happy to share some good news with you. Over time, INVISTA has been monitoring and forecasting. Demand growth, and has been planning its capacity investment to meet this demand growth.
In short, we are investing hundreds of millions of dollars to provide new, highly advanced production capacity as quickly as possible to meet growing demand.
Last year, some unexpected curve balls were thrown in the industry. This is indeed the case.
But in my opinion, the current level of tension in the nylon 6,6 value chain is not one-dimensional. This dynamic is caused by the combination of increased demand and some unforeseen interruptions, such as Hurricane Harvey on the US Gulf Coast. Impact.
INVISTA continues its investment path, which is why. We are always planning and advancing year by year to increase supply.
Our recently announced announcement about the deployment of new ADN technology in existing facilities, as well as the recently announced China ADN factory announcement, are part of our plan to meet the short-term and long-term needs of our customers and our value chain. demand.
Short-term support for the global nylon 6,6 value chain
In order to continue to optimize factory production in 2019, we have deployed the latest ADN technology in our existing facilities and are committed to further increasing production by optimizing production.
INVISTA Orange plant: Since its deployment in 2014, performance improvements have enabled the Orange plant to create production records.
Butachimie (Inventec and Solvay's joint venture in France): announced the deployment of the latest technology in 2017, and will be officially launched in 2019.
INVISTA Victoria plant: In May, we announced a $250 million project at the Victoria plant to upgrade its manufacturing technology and increase ADN production. The goal is to start production in 2020.
I am very happy to share with you that once the investment projects at the Butachimie and Victoria factories are completed, the production capacity of our existing three assets will increase at a rate of more than 200,000 metric tons per year, which is enough to satisfy 400,000 metric tons of nylon 6,6 Additional needs.
Long-term support for the global nylon 6,6 value chain
We recently announced that we will establish a new world-class ADN plant in China. The plant's design plan has begun, with an estimated investment of over US$1 billion and a capacity of at least 300,000 tons. The target is completed in 2020 and will be put into production in 2023.
When our investment projects in China are completed, we will provide a reliable supply for another 600,000 metric tons of nylon 6,6 demand.
In the future, when the market needs to increase production capacity and exceed our current short-term and long-term support levels, INVISTA will always be committed to meeting market demand.