MOSCOW (MRC) -- Royal DSM, the global Life Sciences and Material Sciences company, and NHU have announced the formation of a new joint venture company for the market development and manufacturing of high performance plastics compounds based on polyphenylene sulphide, PPS, as per DSM's press release.
The compounds will further enhance DSM’s offering in the high performance engineering plastics space, adding to its leadership positions with Stanyl polyamide 46 and Stanyl ForTii polyamide 4T. All sales at the joint venture, including those in China, will be handled by DSM’s Marketing and Sales organization with the brand name of Xytron PPS.
The joint venture, DSM NHU Engineering Plastics (Zhejiang) Co Ltd, in which DSM will hold a 60% share and NHU 40%, will be located at Zhejiang, Peoples Republic of China. It will produce a range of high performance engineering plastic compounds based on PPS polymer produced by NHU. The partners do not disclose financial details of the agreement or information on the capacity of the new operation. Products will be targeted principally at Automotive, as well as in Electrical and Electronics, and Industrial markets.
Subject to anti-trust and other approvals from the relevant authorities the transaction is expected to close within a few months.
The partnership will benefit from a commitment by NHU to long-term supply of PPS polymer from its existing plant in Zhejiang. This plant uses proven technology to provide high quality base polymer for compounds. NHU will also contribute its existing compounding capacity to the JV. DSM for its part brings its long-standing expertise in application development and materials science, as well as access to its global customer network.
As MRC informed before, in November 2014, Royal DSM opened its new center for research into and development of high-performance materials on the Brightlands Chemelot Campus in Sittard-Geleen, the Netherlands. The completion of DSM’s largest materials center worldwide is part of the EUR100 million investment in knowledge and innovation in the Netherlands that DSM announced in May 2012. The center employs over 400 knowledge workers and combines important technological skills and expertise unique in the Netherlands for use in applications the world over.
Royal DSM is a global science-based company active in health, nutrition and materials. DSM delivers innovative solutions that nourish, protect and improve performance in global markets such as food and dietary supplements, personal care, feed, pharmaceuticals, medical devices, automotive, paints, electrical and electronics, life protection, alternative energy and bio-based materials.
MRC