Why is China heavily dependent on imports of caprolactam? Why doesn’t Sinopec build more caprolactam production facilities?
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Why is China reliant on imports of caprolactam? Why doesn’t Sinopec build more caprolactam production facilities? As far as I know, there are only four companies in China that produce caprolactam, two of which are part of Sinopec
Has anyone upstairs heard that domestic caprolactam manufacturers have filed anti-dumping complaints? ? Domestic caprolactam manufacturers once filed anti-dumping actions against caprolactam, and these actions were successful, which helped to ensure a certain level of profit for such manufacturers. A few years have passed, and demand for caprolactam in the domestic market has increased. However, prices in Russia remain lower than those in the domestic market, so no companies are willing to invest in such projects (of course, caprolactam production requires a number of supporting facilities, and only companies with the necessary prerequisites can undertake such construction)
Large investments, lengthy processes, coupled with chaotic resource allocation and short-sighted management, are all the reasons for this.
In fact, there are many problems with caprolactam, and numerous external factors are at play! Abroad, caprolactam production is actually on a downward trend; only in Asia, specifically in China, is there significant growth in caprolactam production. In China, caprolactam is primarily used in fiber products, namely nylon fibers for the textile industry. This is related to our country’s industrial structure. As is well known, our country is a major exporter of textiles (due to low labor costs domestically). Of course, the quality of caprolactam in our country is still not good enough; it isn’t suitable for use in high-quality fibers!
At present, caprolactam production capacities of less than 100,000 tons are considered **restricted projects; investing in a facility with a capacity of 50,000 tons requires 2.5 billion yuan. Sinopec has invested a large amount of money in such projects, and it takes many years before they become profitable – so ordinary companies cannot afford to do this
There is no excellent caprolactam production technology in the country. Foreign suppliers of caprolactam technology charge too high prices
I’ve heard of what was mentioned on the 5th floor; the lactam production plants in Sichuan have been able to reach where they are today thanks to the substantial support from Sinopec.
There are no core technologies, insufficient investment in R&D, short-sighted market strategies, and pressure from foreign manufacturers.
The market is in a chaotic state and has not developed. There is insufficient investment: handshake