Shenma runs into ADN field, 50KTA phase I expected by the end of 2022

Shenma Aidian Chemical – 200KTA ADN project
Shenma Industry Co,. Ltd. is actively pushing forward its new adiponitrile (a major raw material to make nylon 66 polymer) project, according to the Chief Secretary of the listed company. The Chief Secretary also mentioned that Shenma is running at a high operation rate of its nylon 66 polymer production lines, and part of the production lines have reached full rate operation. The phase I of the ADN project is of 50kt/year designed capacity, among total of 200kt/year after all phases started, and may achieve an earliest start up by the end of 2022.

On November 13, 2020, Shenma has announced to set up a wholly-owned subsidiary, Shenma Aidian Chemical Co., Ltd., with registered capital of 300 million yuan, for its planned 200kt/year adiponitrile project (phase I 50kt/year). This is a milestone of Shenma on its way of developing nylon 66 industrial chain.

China’s ADN supply heavily depends on import
Adiponitrile is a key raw material for the production of nylon 66. Due to high technical barriers and high investment thresholds, it is a highly monopolized product. As many other nylon 66 polymer manufacturers in China, Shenma has been 100% depending on importing ADN, the raw material for nylon 66 polymer. And above 90% of world ADN capacities have been concentrated in the U.S. and Europe, with the supply status tight in long term.

Shenma to become a game changer
Shenma mainly purchases adiponitrile from INVISTA U.S., with a yearly consumption of more than 100,000 tons. The construction of the adiponitrile project is for steady development in the long run. The new ADN project will become an industrial game changer, breaking the absolutely high import dependency on this very import chemical material, and providing a solid base for the construction of a complete nylon industrial chain.

The project adopts Invista’s "direct hydrocyanation of butadiene", which is considered the most advanced and energy-efficient ADN production technology in the world. Shenma has also considered difficulties and risks in the industrial application process, as well as technological transformation and upgrading. In the future, subsequent expansion plans will be considered based on the development situation.