OREANDA-NEWS. March 28, 2007. An opening ceremony of the Joint Venture “Kuibyshevazot Engineering Plastics Ltd.” (Shanghai) took place in the People’s Republic of China. It was attended by the executives of KuibyshevAzot JSC, representatives of the Russian Consulate in Shanghai, heads of the government and functional district divisions and the Qingpu Industrial and Economic Zone where the JV is located and other officials, reported the press-centre of  JV “ Kuibyshevazot Engineering Plastics”.


The Joint Venture “Kuibyshevazot Engineering Plastics Ltd.” (Shanghai) was registered in September 2005, its construction began in July 2006, the projected investments total $ 9m. KuibyshevAzot JSC holds the majority stake in the JV. The participant on the part of China is He Ye dealing with the sales of chemicals in the market of China. Berstorff GmbH, Germany, a leading manufacturer of compounding machinery supplied the equipment for the Joint Venture.


In the first stage 2 production lines with total capacity 9,900 t/a were put into operation. The plant started to produce engineering plastics based on the own feedstock PA6 polymer consumers of which are manufacturers of car components, tools, household appliances and electric machinery.


The commissioning of the new facilities will ensure for KuibyshevAzot steady sales of the captive polyamide 6 as a feedstock (up to 7,000 t/a).
The rated capacity is expected to achieve by 2010. The annual growth of engineering plastics consumption in China is 16 to 30% while in the global market it makes 6 to 8%.
After the first years of the Joint Venture operation and the market development the original capacity will possibly be doubled.


As a preliminary step aimed at the analysis of potential customer requirements to the JV products in China the compounds produced by Volgaplast Ltd. located at the site in Togliatti were sold.


“Kuibyshevazot Engineering Plastics Ltd.” is the first Russian-Chinese enterprise in the Qingpu Industrial and Economic Zone (Shanghai Province). The location was chosen in consideration of the proximity of the main outlets as here the key compound consumers are located with the same tax benefits offered to any other zones of this type in the People’s Republic of China.


The arrangement of the new production enables for KuibyshevAzot to implement a strategy of launching higher value added products. Moreover, the engineering plastics plant in Shanghai provides a direct presence of the company in South-East Asia strengthening the position of the enterprise in the key marketing area.