DSM joint venture to build world class composite resins facility in China
The new facility will substantially strengthen the local position of the joint venture in the markets for composite materials in China. DSM holds 75% of the shares in JDR whereas Sinopec Assets Management Co. Ltd. holds 25% in the joint venture.
The expansion follows on the continued strong demand for high-end resins in all the application segments in the region. The new unit is expected to come on stream early 2012.
Nico Gerardu, Member of the DSM Managing Board and responsible for the Performance Materials cluster, said: “This investment perfectly fits in our strategy DSM in motion: driving focused growth. For several years in a row demand for composite resins in China has been larger than the capacity to produce. With this large investment in local manufacturing capacity DSM is preparing itself to take our growth in China in composite resins to the next level. It will also contribute to our 2015 target of doubling DSM’s sales in China compared to 2010 to over USD 3 billion.”
Dimitri de Vreeze, President DSM Resins, added: “With this new factory, in combination with the new R&D Center for composite materials in Shanghai which we announced in October 2010, we, together with our JV partner Sinopec look with confidence to a bright future ahead for our composite resins business in China.”
This investment allows DSM to further drive its growth in China in sustainable, innovative solutions. Composite resins can create ecological benefits throughout the whole value chain (with end-markets such as transportation, wind energy, tanks, pipes & relining and building and construction) by reducing energy use, emissions and waste. Many of DSM’s innovations in composite resins are ECO+ products – products and services that, when considered over their whole life cycle, offer clear ecological benefits compared to the mainstream solutions they compete with.
DSM in Composite Resins
DSM is the largest producer of structural resins in Europe and a technology and innovation leader for the composites industry. The company is globally expanding its activities in structural resins, especially in China and India, targeting high added-value segments. In China, DSM is the leader in specialty UPR and Vinyl ester resins. DSM is also the world's largest producer of glass fiber sizings & binders under the Neoxil® brand. DSM can claim unique competencies throughout the composites value chain.