DSM and Mitsubishi Chemical to swap engineering polymers

Polymer supplier DSM Engineering Plastics has reached a deal to exchange its Xantar polycarbonate business for the polyamide operations of Mitsubishi Chemical Corporation (MCC).

The deal, subject to approvals by external bodies and works councils, is expected to close by year end.

According to the Netherlands-based DSM, taking over MCC’s Novamid business will enhance its position in automotive, electrical and flexible packaging markets as well as strengthening its presence in Asia. Last year, company opened its first polymerization plant for Akulon PA6 in China and earlier this year opened a new greenfield compounding plant in India.

The newly acquired PA business, which gives DSM access to PA6/66 for the first time, will be combined with DSM Japan Engineering Plastics KK.

For MCC, the agreement will strengthen its polycarbonate presence, especially in Europe, the company said. Product will be compounded for the Japanese company by DSM at its Genk plant while MCC will carry out a similar function for DSM at its Mepcom Kyushu compounding joint venture in Japan.