Evonik Doubles Asia Capacity for High-Performance Polyamides Amid Surging Regional Demand

German specialty chemicals giant Evonik announced on 3rd November the successful trial production at its new polyamide No. 2 reactor in Shanghai, a key project within its High-Performance Polymers business line.

The expansion is set to double Evonik's production capacity for long-chain polyamides in the Asian market. The company stated the move is focused on strengthening local manufacturing capabilities for a portfolio of advanced materials, specifically AABB-type polyamides and polyamide elastomers (PEBA). This increased capacity is aimed at meeting rapidly growing demand from high-end manufacturing industries, including new energy vehicles and electronics.

Defining the High-End Polyamide Market

Premium polyamides, a core category of high-performance engineering plastics, are gaining strategic importance globally due to their alignment with the technical upgrading needs of sectors like new energy vehicles and electronics. Their superior properties-heat resistance, high strength, and low moisture absorption-underpin significant market potential and value addition. This has led to intensified focus from multinational corporations and accelerated technological catch-up by Chinese firms, heightening industry competition.

The sector is segmented into four primary categories:

• Long-chain polyamides, such as PA612 and PA1012, are characterised by low moisture absorption and high toughness. They are critical for components in new energy vehicles, including cooling pipes, hydrogen storage tank liners, and air suspension pipes.

• Semi-aromatic polyamides, including PA6T, PA9T, and PA6T/6I, typically withstand temperatures exceeding 200°C. They are essential for electronic connectors, drone structural parts, and automotive powertrains.

• Bio-based polyamides, derived from sources like castor beans (e.g., PA11, PA1010), can reduce the carbon footprint by over 30% compared to traditional fossil-based products, aligning with dual carbon goals. Demand is rising in automotive lightweighting and high-end textiles.

• Functionally customised polyamides encompass specialised grades like radiation-resistant, high-thermal-conductivity, and flame-retardant nylon, tailored for niche applications in smart equipment.

Market Expansion and Domestic Breakthroughs

By 2024, the global market for specialty polyamides had reached a scale of billions of dollars, with China acting as a primary growth engine. New energy vehicles are a major demand driver, with polyamide consumption per vehicle increasing from 10-15kg in conventional vehicles to 30-40kg.

For an extended period, core technologies were monopolised by overseas giants including Evonik, BASF, and DuPont, with China's import dependency for high-end products exceeding 60%. However, Chinese companies are making significant inroads. Breakthroughs in domestic production of key raw materials like adiponitrile have enabled technological advances.

For instance, Huitong's PA612 product, noted for its heat resistance (withstanding prolonged use at 180°C) and low water absorption, has been certified by major automotive manufacturers and begun bulk supply. It is recognised as the first domestically produced long-chain nylon to achieve large-scale substitution in core new energy vehicle components like battery module brackets and motor end caps. Separately, Xinxing Jihua has established China's first independently controlled pilot production line for specialised nylon 66 filament yarn, achieving full domestic production from polymerisation to spinning.

Intensified Global Capacity Race

Multinational corporations currently dominate global high-end polyamide capacity. BASF's HMD plant in France, with an annual output of 260,000 tonnes, is Europe's largest upstream nylon 66 feedstock base. Evonik's Singapore facility is a core supply source for long-chain polyamides in Asia-Pacific. DuPont and Arkema collectively account for over 70% of global bio-based polyamide capacity.

By the end of 2024, China's production capacity for nylon 66 alone had reached 1.27 million tonnes, representing 37% of the global total and making the country the world's largest producer. Capacity for long-chain and semi-aromatic polyamides stands at approximately 150,000 tonnes.

The industry is experiencing a surge in investment, with numerous large-scale projects announced:

• In the nylon 66 sector, around 30 Chinese enterprises are advancing projects with a total proposed capacity exceeding 8.73 million tonnes and investments reaching 170 billion yuan.

• In specialty grades, Sinopec Hunan Petrochemical plans facilities for 10,000 tonnes/year of PA612, 20,000 tonnes/year of MXD6, and 5,000 tonnes/year of PA10T.

• Kaisei (Taiwan) Biotech's 900,000-tonne bio-based polyamide project is in the design phase, poised to become the world's largest such base upon completion.

Notable Project Timeline (2025):

• January: Longhua New Materials completed trial production of a 40,000-tonne/year nylon 66 facility and announced a 7.3 billion yuan investment for a 1.08 million-tonne/year project.

• April: KBR and SamsaraEco partnered to build a 20,000-tonne/year enzymatic recycling nylon 66 plant, scheduled for operation in 2028.

• May: Invista Specialty Fibres (Shanghai) added 2,000 tonnes/year of nylon 66 specialty fibres, bringing total capacity to 28,000 tonnes/year.

• June: BASF's HMD plant in France reached 260,000 tonnes/year capacity. Xinxing Jihua launched a 2,500-tonne/year pilot line for speciality nylon 66 filament yarn.

• September: Huafeng Group received approval for a 3,000-tonne/year speciality nylon upgrade. Yulong Petrochemical's 400,000-tonne/year nylon 66 and 10,000-tonne/year PA6T project entered equipment installation.

Challenges and Strategic Responses

The sector in China faces several hurdles:

1. Technological Barriers

Key processes for semi-aromatic and long-chain polyamides remain restricted by overseas patents. Chinese firms' R&D investment averages 5.2%, below the 8%-10% of international peers.

2. Structural Imbalance

While the capacity utilisation rate for standard PA66 was below 60% in 2024, an annual supply gap of 300,000 tonnes persists for high-end long-chain and bio-based products.

3. Raw Material Volatility

A 10% increase in feedstock prices compresses industry profit margins by 1.5 percentage points.

4. Environmental Compliance

Stricter EU REACH regulations and China's own dual carbon policy, mandating a 30% reduction in per-tonne carbon footprint by 2030, pose significant compliance costs.

In response, industry experts recommend a multi-pronged approach: tackling core technology hurdles; optimising capacity layout by curbing low-end expansion and promoting high-end categories; enhancing upstream-downstream synergy across the industrial chain; and establishing a green manufacturing framework through bio-based substitutes and circular recycling. Deepening international cooperation through technology licensing and participation in global standard-setting is also seen as crucial.

Analysts suggest China's high-end polyamide industry is now in a new phase of 'domestic substitution coupled with global competition'. Driven by continued technological advancement, capacity optimisation, and green transformation, the sector is transitioning from pure scale expansion to quality enhancement, positioning itself as a future core growth engine for the global polyamide industry.