Fibrant Nanjing declares force majeure on Caprolactam

Commenting on Fibrant Nanjing's announced force majeure on Caprolactam, Dr. Crystal Chiang, Wood Mackenzie Chemicals Asia Polyamide Director, said:

"Fibrant Nanjing has announced a force majeure on Caprolactam (CPL) - 400 ktpa capacity according to our Wood Mackenzie 'Yellowbook'- resulting from air pollution reaching an undesirable level. The company was informed by the Nanjing City government that production has to be reduced below 80% because air pollution in Nanjing City has reached an unhealthy level several times throughout January 2019. As such, the company will remain at the reduced rate until the end of March.

"Fibrant Nanjing is a major CPL player in China and this force majeure is a clear sign that Chinese authorities are taking environmental constraints and emissions seriously. This mirrors events observed last winter and, if this winter is a difficult one, other companies operating within the polyamide industry should also be impacted."