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2006-09-14 News Release

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Investment aimed at packaging film producing companies

An investment in a new polymer plant in China consists of a major proportion of the production targeted at packaging film producing companies in Asia Pacific.

 

Royal DSM N.V. today announces that it has decided to invest in a new facility at its Jiangyin site, Jiangsu province, to produce high viscosity grades of Akulon* polyamide 6 (PA6). The new plant is expected to come on stream in Q2 2008. The major proportion of the production is targeted at packaging film producing companies in Asia-Pacific. The investment will amount to several tens of millions of USD.

Find Information and Suppliers of polyamide resins.

Akulon polyamide resins represent the best value in all-purpose engineering materials. For molded parts, they offer an excellent balance of easy design and processing with outstanding mechanical properties over a wide temperature range and in diverse operating environments. For extrusion uses, the toughness, resilience and processability of Akulon set the market standards.

Akulon PA6 for monolayer films and Akulon PA66 for food packaging

Akulon PA6* for monolayer films and Akulon PA66* for food packaging use e.g. large diameter sausage skins. photo: DSM

An increased presence in emerging economies is a key objective of DSM's strategy Vision 2010 - Building on Strengths," said Jos Goessens, President of DSM Engineering Plastics. "China, of course, represents an almost unimaginably large market opportunity, thanks to the country's vast population and increasing standard of living. This is especially true in areas such as food packaging - an area where our products bring high value. Together with our recent Chinese investments in a new compounding facility and a development center, the new polymer plant will give DSM a major depth of operations in China and Asia."

The new plant will be built at DSM Engineering Plastics' site in Jiangyin where DSM operates a compounding plant that was opened in April this year. The new plant will draw its caprolactam feedstock, the raw material for PA6, from the DSM Nanjing Chemical Company, a joint venture of DSM and Sinopec that produces caprolactam in Nanjing. The new polymer facility will make DSM unique in producing the full PA6 chain, raw materials, polymer and compounded product in China.

The new plant will use leading technology and will be equipped with best-in-class safety, health and environmental compliance systems. In addition to meeting the growing local demand of the Chinese market, the new plant will also serve as a prime sourcing base for the entire Asia Pacific region. The facility design allows for additional capacity expansion to accommodate further growth in demand in the future.

In addition to the production plants, DSM's Asia Pacific Regional Development Service Center operates from the same Jiangyin site, bringing local availability of development, applications, and technical expertise to customers, as DSM is doing in other parts of the world.

* Akulon brand is a registered trademark of DSM.

Find more Information about DSM.

Read a recent press release about - DSM corporate venturing unit invests in a private early stage company committed to the development and commercialization of safer and more effective healthcare products.


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