Royal DSM, a Dutch-based multinational Life Sciences and Material Sciences company, and China-based chemicals company, Zhejing NHU, are forming a new joint venture (jv) company for the market development and manufacture of high performance plastics compounds based on polyphenylene sulphide, PPS. The compounds will further enhance DSM’s offering in the high performance engineering plastics space, adding to its leadership positions with Stanyl polyamide 46 and Stanyl ForTii polyamide 4T. All sales at the jv, including those in China, will be handled by DSM’s Marketing and Sales organisation with the brand name of Xytron PPS.

The jv, DSM NHU Engineering Plastics (Zhejiang) Co Ltd, in which DSM will hold a 60% share and NHU 40%, will be located at Zhejiang. It will produce a range of high performance engineering plastic compounds based on PPS polymer produced by NHU. The partners do not disclose financial details of the agreement or information on the capacity of the new operation. Products will be targeted principally at Automotive, as well as in Electrical and Electronics, and Industrial markets.

Subject to anti-trust and other approvals from the relevant authorities, the transaction is expected to close within a few months.

The partnership will benefit from a commitment by NHU to long-term supply of PPS polymer from its existing plant in Zhejiang. This plant uses proven technology to provide high quality base polymer for compounds. NHU will also contribute its existing compounding capacity to the JV. DSM for its part brings its long-standing expertise in application development and materials science, as well as access to its global customer network.