DSM NV plans to exchange its Xantar polycarbonate business for the nylon operations of Mitsubishi Chemical Corp., in a deal scheduled to close by year end.
Each business involved has annual sales of about 90 million euros ($125 million).
Taking over Mitsubishi's Novamid business will boost the position of DSM Engineering Plastics in automotive, electrical and flexible packaging markets and strengthen its presence in Asia, where it already has been expanding nylon activities. Last year, the DSM unit opened its first polymerization plant for Akulon nylon 6 in China. Earlier this year it launched a compounding plant in India.
The nylon business, which will give Heerlen-based DSM NV access to nylon 6/66 for the first time, will be combined with DSM Japan Engineering Plastics KK. DSM once planned its own PC polymer plant in the Netherlands but instead has run the business on material it buys.
Tokyo-based Mitsubishi is restructuring to focus on core businesses, and the deal will strengthen its PC presence, especially in Europe. DSM will compound PC product at its Genk, Belgium, plant for Mitsubishi. In turn, Mitsubishi will compound nylon at its Mepcom Kyushu joint venture in Kurosaki, Japan, for DSM.
The transaction is pending approval by the relevant authorities.