Netherlands-based DSM and Russia’s KuibyshevAzot are forming two joint ventures related to engineering plastics. One of the deals will make DSM the first Western nylon 6 supplier with its own manufacturing presence in Russia or the Commonwealth of Independent States
DSM announced that one of the ventures will relate to marketing and sales of engineering plastics in Russia and the CIS. The second venture will focus on production of compounds at a plant in Togliatti, Russia. Togliatti-based KuibyshevAzot also will receive a license to DSM’s proprietary cyclohexanone technology, which will be applied at KuibyshevAzot’s caprolactam plant. As a result, the company will boost its capacity to make caprolactam, a feedstock for nylon 6 resin. “Russia is an increasingly important market for engineering plastics and it is expected that the market for [nylon 6] will double in the next five years,” said Nico Gerardu, a member of DSM’s board responsible for performance materials, in a news release. “With our partnership with [KuibyshevAzot], I expect that DSM Engineering Plastics will be in an excellent position to capitalize on this anticipated growth,” he said. On the sales and marketing side, the joint venture will concentrate on nylon 6, both in compounds and high viscosity applications including film. DSM Engineering Plastics will hold a 51% stake in the venture. DSM Engineering Plastics also plans to buy 80% of the engineering plastics compounding plant located on KuibyshevAzot’s manufacturing site in Togliatti. Terms of the deal, and information about the capacity of the plant, were not disclosed. KuibyshevAzot said it has a leading position in caprolactam and nylon in Russia and CIS and is among the top 10 global producers of these products. The company posted 2009 net sales of RUB 16,039m ($373.5m) and 5,300 employees.