DSM and NHU form joint venture to add PPS compounds to DSM’s global portfolio of high performance engineering plastics

Royal DSM, the global Life Sciences and Material Sciences company, and NHU announce the formation of a new joint venture company for the market development and manufacturing of high performance plastics compounds based on polyphenylene sulphide, PPS. 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.

“The new joint venture will help DSM deliver on its growth strategy, and will reinforce its High Performance Plastics portfolio as a key growth driver”, says Roelof Westerbeek, President DSM Engineering Plastics. “PPS fits very well alongside our current range of materials, and will be particularly useful for us in presenting complete solutions for customers operating in key markets, especially automotive, electrical and electronics. PPS has a long and successful track record and a promising future, and we are very excited about presenting it to existing and new customers. We already know that the addition of PPS products into our product portfolio will be highly appreciated by our existing global key customers. It will strengthen DSM’s position as a preferred solutions provider and strengthen our current product portfolio.”

Jiang Weiming, President DSM China commented “DSM is very pleased to establish co-operation with a very capable partner such as NHU, which has demonstrated a strong technology base and ability to develop new polymers like PPS. This major step shows our commitment to develop long term business relationships with our Chinese partners.”

Mr Bai Shan Hu-CEO NHU listed company says that NHU has found an ideal partner to bring the new PPS compound range to market. “NHU is looking forward to cooperating with DSM. We already have considerable experience in PPS polymerization technology, and high quality of our PPS polymers has been recognized and acknowledged by clients world widely. We believe that the combination of DSM’s strength in materials science and our technology of PPS Polymerization will bring more potentials of the product” he says. “And of course DSM’s global presence means that whole new markets are now opening up for us.”

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