DSM and MCC to exchange polycarbonate and polyamide businesses
DSM and Mitsubishi Chemical Corporation (MCC) today announce that they have signed a memorandum of understanding
The memorandum implicates 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. The parties have agreed not to disclose other financial details.