DSM Engineering Plastics will enter into two joint ventures with KuibyshevAzot OJSC (KA). In both joint ventures DSM Engineering Plastics will hold a majority share. In addition, KA will be granted a license under DSM Fibre Intermediates’ technology for the production of cyclohexanone.
The two joint ventures of DSM Engineering Plastics and KA relate to marketing and sales of engineering plastics in Russia and other members of the Commonwealth of Independent States (CIS) and secondly for the production of engineering plastics compounds in a plant located in Togliatti (Russia). The strategic cooperation between DSM and KA will also result in a license grant under DSM’s proprietary cyclohexanone technology to be applied at KA’s Togliatti caprolactam plant, resulting into a further increase of its capacity to meet the growing demand for this polyamide 6 intermediate. Nico Gerardu, Member of the DSM Managing Board and responsible for the Performance Materials cluster, commented: “This strategic cooperation with KA is another example of DSM’s commitment to expansion in High Growth Economies through Acquisitions & Partnerships, two of the four growth drivers of our corporate strategy DSM in motion: driving focused growth. We are excited to be able to partner with KA, one of Russia’s leading companies in the intermediates industry. 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 Engineering Plastics will be in an excellent position to capitalize on this anticipated growth. Furthermore, I see the license agreement for cyclohexanone as further recognition of our technology leadership.”
Victor Gerasimenko, General Director of KuibyshevAzot OJSC, said: “Cooperation with DSM will promote the realization of our strategic plans to strengthen our leading positions in the markets for caprolactam and polyamide and to increase the processing of these products within Russia. The use of technology from leading global licensors will allow us to increase operational performance and long-term competitiveness.”