DSM Invests In Engineering Plastics

DSM plans to build two new engineering plastics plants at its site in Geleen, the Netherlands.

The Dutch company will spend about $125 million on the plants, which will make two of the firm's top specialty products: Stanyl nylon 46 and Stamylan UH ultra-high-molecular-weight polyethylene. The new plants, which will each double existing production capacity, are scheduled to come onstream in 2008.

According to Nico Gerardu, a member of DSM's managing board, the investments "will fuel the profitable growth of our specialty performance materials Stanyl, Stamylan UH, and Dyneema and build on our strengths in marketing and application development of these products."

Stamylan UH is used in industrial, sports, and other applications and as a raw material for the company's Dyneema high-strength fibers.

DSM is the world's only producer of nylon 46, which is used in applications such as cell phones, cars, and computers. With the new plant, the company will operate two facilities in Geleen that supply Stanyl base resin to DSM operations in Europe, the U.S., Japan, and, most recently, China.

Additionally, DSM says it has decided to expand its diaminobutane plant in Geleen to match the increased capacity for Stanyl. Diaminobutane is the key monomer in the production of the engineering plastic.