Honeywell to Expand Caprolactam Production

Morris Township, NJ, October 3, 2006—Honeywell Resins & Chemicals today announced that it will expand production of caprolactam, a key raw material used in the production of nylon, at its Hopewell, Va. facility. The expansion, combined with ongoing production improvements, is expected to boost caprolactam production by up to 10 percent. The Hopewell facility produces more than 750 million pounds, or 340,000 metric tons, of caprolactam annually. "As global demand for caprolactam rises, especially in China, we are making the investments necessary to meet the demand for merchant supplies,"said Qamar Bhatia, vice president and general manager for Honeywell Resin & Chemicals, noting caprolactam consumption in China alone has grown from nearly 500,000 metric tons in 2002 to more than 700,000 metric tons in 2005. Demand in China is expected to outstrip regional supply through 2011. Bhatia said the expansion will include new production equipment at the Hopewell facility. Celebrating 50 years of caprolactam production in 2005, the Hopewell facility is the world's largest single-site producer of caprolactam, which is used in the production of nylon fiber, films and plastics; and ammonium sulfate, a co-product of caprolactam production which is used as a fertilizer and sold under the Sulf-N(R) brands. Honeywell Resins & Chemicals, a $1.1 billion unit of Honeywell Specialty Materials, was formed in 2005 following the sale of Honeywell's nylon carpet fiber business to Shaw Industries Group. Resin & Chemicals supplies caprolactam to Shaw under a long-term supply agreement, but also sells merchant-grade caprolactam to other customers in molten or flake form. In addition to caprolactam and ammonium sulfate, Resins & Chemicals produces nylon resins under the Aegis(R) brand, specialty polymers and other chemicals.

Related Topics:Shaw Industries Group, Inc.

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