Home / Knowledge / News / Textiles / Exchange biz activities is win-win situation for DSM & MCC

Exchange biz activities is win-win situation for DSM & MCC

29
May '09
Royal DSM N.V., the global Life Sciences and Materials Sciences company headquartered in the Netherlands, and Mitsubishi Chemical Corporation (MCC) announce that they have signed a memorandum of understanding for DSM to acquire MCC's Novamid polyamide business in exchange for DSM's Xantar polycarbonate business.

For both companies the businesses they will add to their portfolio as a result of the intended swap of activities provide a strong strategic fit. DSM Engineering Plastics will be able to further reinforce its position as one of the two globally leading producers of polyamide engineering plastics.

The intended swap will enable DSM Engineering Plastics to strengthen the service and innovation capabilities it offers to the automotive industry, the electrical market and the flexible packaging market, not only in Europe and the United States but also in Asia, especially in Japan and China. Following the intended acquisition of the Novamid business DSM will also be able to add extra value to Japanese overseas operations with innovative technology, local service and product delivery.

MCC will be able to fortify its global position in polycarbonate through the addition of DSM's innovative polycarbonate business, which is mainly focused on the European market. In the agreement it is envisaged that DSM Engineering Plastics will compound polycarbonate in Genk (Belgium) for MCC and in turn MCC, through its MEPCOM Kyushu joint venture, will compound polyamide in Kurosaki (Japan) for DSM.

Both businesses have an annual net sales level of approximately EUR 90 million each. The parties have agreed not to disclose other financial details.

Nico Gerardu, member of DSM's Managing Board and responsible for the Performance Materials cluster, said: "This exchange of activities is a win-win situation for both companies. It allows us to further strengthen our position as a world leading producer of polyamide while at the same time we are gaining a strong foothold in Japan, a very important market for engineering plastics."

Roelof Westerbeek, President of DSM Engineering Plastics, said: "This agreement builds on the strength of both companies. It is my belief that our polycarbonate business will have a bright future under the new ownership of MCC and I am very happy to welcome MCC's polyamide business to the DSM family. Through this swap we will strengthen our position in PA6 and at the same time expand our portfolio to include PA6/66."

In light of the current difficult economic conditions, MCC is actively restructuring its petrochemicals business, concentrating on its core activities, such as the polycarbonate operations. The wide application areas (e.g. automotive, IT, and electronics) and potential further market expansion make polycarbonate a core business for MCC. The addition of DSM's polycarbonate business will strongly increase MCC's European polycarbonate business and add a portfolio of innovative products.


Must ReadView All

Pic: Ammza12 | Dreamstime.com

Apparel/Garments | On 3rd Dec 2021

Fashion & apparel companies rethinking on traditional supply chains

Drawing lessons from the resurgence of COVID-19 cases in China and...

Pic: Kheng Guan Toh | Dreamstime.com

Retail | On 3rd Dec 2021

US RILA offers supply chain recommendations to White House

To avert an ongoing cycle of congestion in the longer term, The US...

Pic: American Clothes Retail © Arne9001 | Dreamstime.com

Retail | On 3rd Dec 2021

Nearly 180 mn shop over Thanksgiving holiday weekend in US: NRF

Nearly 180 million Americans shopped during the five-day holiday...

Interviews View All

Textile Industry, Head honchos

Textile Industry
Head honchos

Quality & affordability to affect market acceptability of new fibres

Textile Industry, Head honchos

Textile Industry
Head honchos

Marry craft and utility

India-EU Summit, Representatives

India-EU Summit
Representatives

India-EU FTA will provide EU with better access to a huge & rapidly...

Dhruv Toshniwal & Udit Toshniwal,

Dhruv Toshniwal & Udit Toshniwal

Launched a year ago, Fashions Pvt Limited conceptualises and sees D2C...

Shambhu Nath Jha,

Shambhu Nath Jha

Leading research and consulting firm Fact.MR recently launched a report on ...

Bharat Ahuja,

Bharat Ahuja

A mono store brand, <b>Bharat Ahuja's</b> Desire Design Studio has emerged ...

Seth Casden, Hologenix

Seth Casden
Hologenix

Hologenix is a material sciences company dedicated to developing products...

Karan Bose, Hula Global

Karan Bose
Hula Global

Hula Global, a leading isolation gown manufacturer in India, has been...

Johann-Philipp Dilo, Dilo Group

Johann-Philipp Dilo
Dilo Group

German company Dilo Group is one of the leading equipment suppliers of...

Abhishek Agarwal, Purple Style Labs

Abhishek Agarwal
Purple Style Labs

Late Indian fashion designer Wendell Rodricks, is known for his...

Seema Gujral, Label Seema Gujral

Seema Gujral
Label Seema Gujral

<b>Seema Gujral</b>'s designs for her eponymous label revolve around...

Vidur Adlakha & Riccardo Bennidini, La Fuori

Vidur Adlakha & Riccardo Bennidini
La Fuori

With an active presence in US, Italy and India, clothing brand La Fuori...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


December 2021

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.


Advanced Search