Heerlen, the Netherlands -- Royal DSM said 25 Feb that its joint venture Jinling DSM Resins Co. Ltd (JDR) will invest about Euro 50 million ($69 million) in a new facility to make composite resins in Nanjing, China.
In China, DSM claims to be the leader in speciality unsaturated polyester resins and vinyl ester resins. DSM is also the world's largest producer of glass fibre sizings and binders. It also has an thermosetting urethane resin, Turane, for composites.
The planned facility in China, intended to replace the current one, will be among the world's largest plants for composite resins, said DSM, adding that it has a 75 percent share in the investment.
Sinopec Assets Management Co. Ltd holds the remaining 25 percent stake.
DSM said the facility will substantially strengthen the local position of the joint venture in the markets for composite materials in China.
The expansion follows continued strong demand for high-end resins in all applications in the region. The new unit is expected to come on stream early 2012.
Nico Gerardu, DSM board member for Performance Materials, said the investment fits DSM's strategy for driving focused growth. "For several years in a row demand for composite resins in China has been larger than the capacity to produce. With this large investment in local manufacturing capacity DSM is preparing itself to take our growth in China in composite resins to the next level. It will also contribute to our 2015 target of doubling DSM's sales in China compared to 2010 to over $3000 million."
This investment allows DSM to drive up its growth in China in sustainable, innovative solutions, with composite resins being able to create ecological benefits throughout the value chain. They do this in end-markets such as transport, wind energy, tanks, pipes & relining and building and construction, by reducing energy use, emissions and waste.