Ascend Performance Materials | On the Rise in the Nylon Industry
Ascend Performance Materials was established in 2009 – and is growing fast. The company currently has a $7 million expansion project in the works at its Foley, AL facility. The project includes installing new machinery, which will enable the plant to double production, as well as make a larger array of products. In addition to expanding capabilities, the plant also plans on adding to its workforce with the hire of 20 new employees. Likewise, the company will be investing $6.5 million in machinery and equipment in its Decatur, AL facility. And at their Greenwood, SC plant, the company will invest $3.25 million to expand operations and add jobs.
So what’s driving all this growth?
Ascend, formerly known as Solutia, Inc., is a global leader in the production of Nylon 6,6. Used in applications ranging from carpet to apparel to tires, Nylon 6,6 is named so because of how its molecules link together. And the demand for Nylon 6,6, which is the strongest of all nylons and has the highest melting point, is on the rise, primarily due its heat resistant nature.
For example, it works well in under-the-hood components used in fuel-efficient vehicles, which create more heat than other vehicles. Since demand for fuel-efficient vehicles is increasing, Ascend’s nylon has new value. Likewise, in industrial and technical fiber applications, Nylon 6,6 has a higher melting temperature, when compared with Nylon 6, as well as superior dimensional stability and abrasion resistance. And in apparel textile fiber applications, Nylon 6,6 offers a smooth, silky texture combined with superior color fastness, abrasion resistance, and excellent stretch recovery.
In fact, demand for Nylon 6,6 is expected to remain strong due to high consumption from the automotive sector, which has been driven by exports to Asia. According to Ascend’s Foley plant manager, Thomas Boggs, “We expect exports to Europe and Asia to increase significantly as we double our production capacity.”
John Brown is a retired financial advisor specializing in M&A deals. If you would like to learn more about merger & acquisitions in specialized niches visit Valence Group.
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