10 Dec 2003
DSM AIMS TO GROW ITS ENGINEERING PLASTICS BUSINESS IN ASIA BY MORE THAN 25% PER YEAR OVER THE NEXT 5 YEARS
Over the next five years, the main strategic cornerstone of global growth for DSM Engineering Plastics is forecasted to be Asia. Significantly, DSM Engineering Plastics, a business group within DSM Performance Materials, has identified a number of key factors to help achieve this medium-term success across Asia, and in particular in China.
Comments Sales and Marketing Director, Jan Waninge, “The forecasted year on year overall market growth rate for the engineering plastics market in Asia is 25%. Set against this, DSM aims to exceed this growth rate through the implementation of a number of strategic initiatives. These are: customer support infrastructure; technical performance; and commitment to markets in Asia and in particular China.” Currently, approximately 15% of DSM's global engineering plastics business is in Asia, and the company aims to increase this share significantly over the next five years.
To provide a responsive service for China customers, the company has just increased capacity at its state-of-the-art manufacturing and compounding plant at Jiangyin, Jiangsu Province. Explains Jan Waninge, “We foresee a large growth in demand for engineering plastics in China, and the recently increased capacity at our compounding facility in Jiangyin, will help to meet this demand. We currently employ approximately 200 staff across Asia, including more than 100 in our China compounding facility.”
As well as serving the domestic China market, DSM's Jiangyin facility also supplies materials to the rest of Asia. The facility produces Akulon® polyamide 6 and 66, Arnite® thermoplastic polyester, and Stanyl® polyamide 46 materials, both for the domestic China market and also to support the increasing export to other markets in the Asia Pacific region.
To maintain and drive technical excellence across its products, DSM has also opened a new Regional Research and Development Center for engineering plastics in Jiangyin. The facility has state-of-the-art equipment to test and characterize materials, and enables grade and applications development to be carried out.
Continues Waninge, “By offering this expertise locally, we will be able to help customers in China and Asia to implement their new product development programmes in a technically advanced and timely fashion. The facility is an integral part of our growth strategy for China and Asia, and will enable us to stay at the forefront of technical development.”
DSM compounds engineering plastics locally in China, India, Japan and Singapore. This provides the proximity to the key markets for reliable supply, short lead-times and flexibility when needed. With DSM’s joint ventures for the production of Caprolactam in Nanjing and polymerization of polyamide 6 in Xinhui, DSM is fully backwards integrated in China in the highly important polyamide 6 supply chain. Together with other strategic sourcing agreements in China, the company has the capability to act as a competitive local supplier in the China market, while at the same time leveraging its global capabilities. Says Waninge, “We look upon our geographical spread as an advantage, and endeavour to support and add value to our customers, wherever they are based.”
In China, both the compounding facilities and the new Regional Research and Development Center represent a competitive advantage for DSM logistically, as well as a demonstration of the company’s long-term commitment to the Chinese market. To support its domestic customers in China, DSM operates sales centres in Shenzhen and Beijing, as well as at its Asia Pacific headquarters in Shanghai.
Further illustration of DSM’s commitment to engineering plastics in Asia is its history in the region. The company has been present in Asia since the late 1980’s, through its Stanyl® business. The purchase of the Akzo Engineering Plastics business in 1992 further reinforced this commitment, resulting in the wholly owned business unit of DSM Engineering Plastics Asia Pacific being established in 1998. Today, the company has sales and service facilities across
Reader enquiries
DSM Engineering Materials
30 Pasir Panjang Road #13-31
Mapletree Business City
Singapore 117440
Singapore
Notes for editors
DSM Engineering Plastics
DSM Engineering Plastics is a business group forming part of DSM’s Performance Materials cluster. DSM is a global supplier of Stanyl® PA46 and Akulon® 6 and 66 polyamides, Arnitel® TPE-E, Arnite® PBT and PET polyesters, These materials are used in technical components for electrical appliances, electronic equipment and cars, in barrier packaging films as well as in many mechanical and extrusion applications. The business group had annual sales of EUR 579 million in 2002. DSM Engineering Plastics has a market share of about 5% in the world market. With Stanyl®, it is the global market leader in high heat polyamides.
Editorial enquiries
Thea Trilsbeek
DSM Engineering Materials
Willem van de Velde
EMG