June 18, 2025 -
Ascend Performance Materials to Shut Down Major Chinese HMD Facility in Strategic Pivot
In a surprising move, global polyamide leader Ascend Performance Materials has announced plans to phase out operations at its newly commissioned hexamethylenediamine (HMD) production site in Lianyungang, China. The decision follows a comprehensive review of market dynamics and regulatory conditions, signaling a significant shift in the company’s regional strategy.
The state-of-the-art facility, which began operations just eight months ago in October 2024, represented Ascend’s largest overseas investment outside the U.S., with total expenditures reaching 4.2 billion yuan (600 million). Spanning 684 acres, the first-phase project—costing 1.29 billion yuan (185 million)—was designed to produce 200,000 metric tons of HMD annually, targeting 2.86 billion yuan ($410 million) in yearly revenue.
Industry analysts link the abrupt closure to Ascend’s broader restructuring efforts. The company filed for Chapter 11 bankruptcy protection in the U.S. this April to streamline its balance sheet, though it explicitly excluded international assets from the proceedings. The Lianyungang shutdown, however, has raised questions about the firm’s long-term commitments in Asia.
Ascend confirmed it will adhere to all Chinese environmental and safety regulations during the decommissioning process. Its Suzhou manufacturing base will continue normal operations, with other China-market activities unaffected. Market observers suggest the move may reflect intensified competition, particularly from European rivals like BASF, which recently launched a 260,000-ton HMD plant in Chalampe, France.
As a key player in nylon 66 supply chains—with 700,000 tons of polymer capacity, 490,000 tons of adiponitrile output, and 600,000 tons of HMD production—Ascend’s realignment could reshape global polyamide trade flows. The automotive and electronics sectors, major consumers of these materials, will be watching closely for further developments.