DSM partners with KuibyshevAzot for Russian plastics ventures
Netherlands-based chemicals group DSM has formed an engineering plastics joint venture with Russia's KuibyshevAzot (KA).
Netherlands-based chemicals group DSM has formed an engineering plastics joint venture with Russia’s KuibyshevAzot (KA).
Under the agreement, DSM is to acquire an 80 per cent stake in KA’s engineering plastics compounding plant in Togliatti in the Samara region, where KA’s manufacturing site is located.
The two companies have also agreed to market and sell engineering plastics in Russia and the rest of the Commonwealth of Independent States markets. They will focus on polyamide 6 (PA6), both for compounds and high viscosity applications, including film. According to a press release, DSM will hold a 51 per cent interest in this venture. The transaction will also allow KA to be granted DSM’s technology license for the production of cyclohexanone, the press release said.
The joint venture and all related agreements are subject to regulatory approval, DSM said, adding that the acquisition of the Togliatti plant is expected to be completed in the first quarter of 2011.
“Russia is an increasingly important market for engineering plastics and it is expected that the market for PA6 will double in the next five years. With our partnership with KA, I expect that DSM will be in an excellent position to capitalize on this anticipated growth,” said Nico Gerardu, DSM’s managing board member.
Financial details of the joint ventures have not been disclosed.