Nylon intermediates and fibre maker Invista is to set up a hexamethylene diamine (HMD) plant at the Shanghai Chemical Industrial Park after receiving  Environmental Impact Assesment approval from the Shanghai Environmental Protection Bureau.

HMD is a key intermediate used in a range of applications including textiles and coatings and is used in the production of nylon 6,6.

The site is expected to begin production in 2015, and will produce 215,000 tons of HMD per year.

"This new plant will give Invista and its customers a significant competitive advantage," said senior vice president Steve Kromer, who is responsible for implementing Invista's integrated nylon 6,6 intermediates investment strategy in Asia.

"With new local production, the plant will facilitate the growing needs of our Asia businesses and strengthen our position in the region as supplier of choice."

The company said the site will be the most energy efficient HMD facility in the world.