Global leading chemical product supplier Ascend Performance Materials announced on Tuesday, June 17th, that it will systematically close its hexamethylene diamine production plant in Lianyungang, China in the coming months. This decision marks a significant strategic adjustment for the company in the Chinese market.
Ascend Performance Materials’ integrated production base for hexamethylene diamine and nylon chemicals in Lianyungang officially started operations in October 2024, making it the company’s largest investment project outside the United States. The total investment in this base is about 4.2 billion RMB, covering an area of 684 acres. The initial investment was 1.29 billion RMB with a designed annual production capacity of 200,000 tons of hexamethylene diamine. Once fully operational, the projected annual sales revenue is expected to reach 2.86 billion RMB.
Surprisingly, this highly anticipated project faced closure just 8 months after it began operations.
Phil McDivitt, the Global President and CEO of Ascend Performance Materials, stated, “After carefully evaluating market changes and ongoing trade disputes, we have decided to close the Lianyungang plant to seek the best way to serve our local customers.”
Ascend Performance Materials emphasized that the decision to shut down operations was made after a comprehensive assessment of the long-term viability of the plant in the evolving market dynamics and regulatory environment. The company will strictly adhere to relevant Chinese laws and regulations, work closely with local governments, and ensure that the shutdown activities comply with all environmental and safety standards.
It is worth noting that the recent implementation of permit approval systems for ethane exports by the United States may also have an impact on the petrochemical industry in China, which could be one of the factors considered in Ascend Performance Materials’ decision-making process.
Headquartered in Houston, Texas, Ascend Performance Materials has nine global branches, including five integrated production bases in the southeastern United States and a specialty plastics production base in Europe.
As a global leader in specialty plastics, fibers, and chemical products, Ascend Performance Materials has a production capacity of 700,000 tons of nylon 66 polymers, 490,000 tons of acrylonitrile, and 600,000 tons of hexamethylene diamine. Its business spans across sectors such as automotive, electronics, and electrical fields, with the automotive components business accounting for over 50% of its operations.