DSM and KuibyshevAzot announce strategic cooperation in Russia
(Thomson Reuters ONE) -
Royal DSM N.V., the global Life Sciences and Materials Sciences company
headquartered in the Netherlands, and KuibyshevAzot OJSC (KA) today announce a
strategic cooperation. As a result of this strategic cooperation, DSM
Engineering Plastics will enter into two joint ventures with 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."
DSM Engineering Plastics and KA are joining forces in a marketing and sales
joint venture to better capture opportunities in the growing market for
engineering plastics in Russia and other countries in the region. The joint
venture will concentrate on polyamide 6 (PA6), both compounds and high viscosity
applications including film. DSM Engineering Plastics will hold a 51% stake in
the joint venture.
DSM Engineering Plastics also intends to acquire 80% in the engineering plastics
compounding plant located on KA's manufacturing site in Togliatti. As such, DSM
will be the first western PA6 supplier with its own manufacturing presence in
Russia and the CIS. Financial details and capacity of the plant will not be
disclosed.
As a result of the license agreement between DSM and KA, DSM will realize
royalty income over 15 years. DSM Fibre Intermediates will also participate via
drawing rights in part of the increased production capacity of KA.
DSM has proprietary world-class cyclohexanone and caprolactam technologies with
multiple licensees worldwide.
The establishment of the joint ventures and related agreements is subject to
regulatory approval. Closing of the intended acquisition of the compounding
plant is expected in Q1 2011.
KuibyshevAzot OJSC
KuibyshevAzot OJSC is one of the leading companies of the Russian chemical
industry. The company located in Togliatti, Samara region, conducts its business
in two areas: production of caprolactam and its derived products (PA-6, high
tenacity yarns, cord fabric, engineering plastics) production of ammonia and
nitrogen fertilizers. KuibyshevAzot takes a leading position in output of
caprolactam and polyamide in Russia and CIS and is among the top ten major
global producers of these products. The company consistently builds up the
proportion of higher added value product, by realization from 2003 projects for
further caprolactam processing. In 2009 the company realized net sales of RUB
16,039 million ($ 505.2 million with 5,300 employees. The official web site
www.kuazot.ru
DSM - the Life Sciences and Materials Sciences Company
Royal DSM N.V. creates solutions that nourish, protect and improve performance.
Its end markets include human and animal nutrition and health, personal care,
pharmaceuticals, automotive, coatings and paint, electrical and electronics,
life protection and housing. DSM manages its business with a focus on the triple
bottom line of economic performance, environmental quality and social
responsibility, which it pursues simultaneously and in parallel. DSM has annual
net sales of about ?8 billion and employs some 22,700 people worldwide. The
company is headquartered in the Netherlands, with locations on five continents.
DSM is listed on Euronext Amsterdam. More information:www.dsm.com
For more information:
DSM Corporate Communications DSM Investor Relations
Herman Betten Hans Vossen
tel. +31 (0) tel. +31 (0) 45 5782864
45 5782017
fax +31 (0) 45 5782595
fax +31 (0)
45 5740680 e-mail investor.relations(at)dsm.com
e-mail media.relations(at)dsm.com
KuibyshevAzot OJSC KuibyshevAzot OJSC
Marketing and Strategic Planning Director Head of Information Management
Department
Dmitri Vasilyevich Rybkin
Yelena Yuryevna Kosova
Tel. +7(8482) 56-16-00,
Tel . +7(8482) 56-10-47, 56-11-47,
Fax +7 (8482) 56-11-02
Fax +7 (8482) 56-11-02
E-mail: RybkinDV(at)kuazot.ru
E-mail: KosovaEY(at)kuazot.ru
Press release-pdf:
http://hugin.info/130663/R/1480964/416346.pdf
This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: DSM N.V. via Thomson Reuters ONE
[HUG#1480964]
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Datum: 20.01.2011 - 08:15 Uhr
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