15 Jan 2010
DSM ACQUIRES FULL OWNERSHIP OF NPC PA6 POLYMER FACILITY
Royal DSM N.V., the global Life Sciences and Materials Sciences company headquartered in the Netherlands, and Shaw Industries Group, Inc. announce today that DSM has acquired full control of the PA6 polymerization facility of Nylon Polymer Company LLC (NPC) in Augusta (Georgia, United States). Shaw Industries and DSM Chemicals North America were previously joint venture partners in NPC.
As a result of the transaction, which has been closed, NPC is fully integrated into DSM Engineering Plastics’ activities as of 1 January 2010. Financial details and terms of the transaction will not be disclosed.
For DSM Engineering Plastics the acquisition of the full ownership of the PA6 polymerization facility is an important step in its strategy to increase its geographical footprint, including expansion into South America. It also allows the company full integration in the PA6 chain, including caprolactam, polymer and compounded products, in North America, supporting its strong commitment to key customers in the Americas. Last year, DSM opened its first PA6 polymerization plant in China, making it the only company to produce the entire PA6 chain in China.
Koen Devits, President of DSM Engineering Plastics Americas, says: "This acquisition represents a major expansion of our polymerization capabilities in the Americas. It helps us to fully exploit our strong backward integration at the Augusta site, where DSM also produces caprolactam, a key raw material for Akulon®. The acquisition is also needed to support the additional sales opportunities we have generated, especially in the automotive, furniture and packaging industries, and it illustrates DSM’s strong commitment to the Americas market."
Richard Pieters, Global Business Director Akulon® PA6, comments: “We are very excited about this acquisition as it will further reinforce our commitment to global customers who want local supply and global support. North America will remain a key specification and innovation area for DSM Engineering Plastics.”
Akulon® Polyamide 6 (PA6) is a thermoplastic with outstanding mechanical properties over a wide temperature range used in various everyday applications such as automotive, luggage, sports, electronics, packaging films, lighting and furniture. Caprolactam, produced by DSM Fibre Intermediates, is the raw material for PA6, which gives DSM a unique position as an integrated producer of the material. As a replacement of metal in various applications, Akulon® PA6 can offer weight reduction to for instance the automotive industry, resulting in lower CO2 emissions.
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Notes for editors
About Shaw Industries
Shaw Industries Group, Inc., a subsidiary of Berkshire Hathaway, Inc., is the world's largest carpet manufacturer and a leading floor covering provider with more than USD 5 billion in annual sales and approximately 26,000 associates. Headquartered in Dalton, Ga., the company manufactures and distributes carpeting, rugs, hardwood, laminate and ceramic tile for residential and commercial applications worldwide. A recognized leader in environmental stewardship, Shaw has implemented hundreds of sustainability initiatives and cradle-to-cradle design solutions, collectively termed the Shaw Green Edge. For more information, visit www.shawfloors.com.
DSM Engineering Plastics
DSM Engineering Plastics is one of the world's leading suppliers of quality engineering thermoplastics providing customer value through sustainable solutions that reflect the DSM People, Planet and Profit strategy. DSM Engineering Plastics delivers innovative opportunities for customers who design or produce electrical applications, electronic equipment, cars, barrier packaging films as well as many mechanical and extrusion applications. These markets are served with a broad portfolio of high-performance materials including Akulon® 6 and 66 polyamides, Arnitel® TPC, Arnite® PBT and PET polyesters, Yparex® extrudable adhesive resins, and Stanyl® high heat 46 polyamides. Most recently, DSM Engineering Plastics introduced the first new polymer of the 21st century: Stanyl® ForTii™. DSM Engineering Plastics had sales in 2008 of EUR 761 million with 1500 employees worldwide. More on: www.dsmep.com.
DSM – the Life Sciences and Materials Sciences Company
Royal DSM N.V. creates innovative products and services in Life Sciences and Materials Sciences that contribute to the quality of life. DSM’s products and services are used globally in a wide range of markets and applications, supporting a healthier, more sustainable and more enjoyable way of life. End markets include human and animal nutrition and health, personal care, pharmaceuticals, automotive, coatings and paint, electrical and electronics, life protection and housing. DSM has annual net sales of EUR 9.3 billion and employs some 23,500 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.
Forward-looking statements
This press release may contain forward-looking statements with respect to DSM’s future (financial) performance and position. Such statements are based on current expectations, estimates and projections of DSM and information
currently available to the company. DSM cautions readers that such statements involve certain risks and uncertainties that are difficult to predict and therefore it should be understood that many factors can cause actual performance and position to differ materially from these statements. DSM has no obligation to update the statements contained in this press release, unless required by law. The English language version of the press release is leading.
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