DSM and NHU Form a Joint Venture Company to Produce PPS Compounds

China: Royal DSM, a Netherlands based life sciences & material sciences company, and NHU Special Materials (NHU), a China based chemicals producer and distributor have formed a joint venture named as DSM NHU Engineering Plastics. The newly formed joint venture company would be responsible for manufacturing polyphenylene sulphide (PPS) compounds. Royal DSM controls 60% share in the newly formed joint venture company, while the rest of 40% is sustained by NHU. The joint venture company is located in Zhejiang province which is in close located to the linear PPS polymer plant of NHU in Shangyu. The PPS compounds manufactured by new JV company would be branded as Xytron PPS across the globe and would cater to the electrical and electronics, water management automotive and industrial markets.

TechSci Research depicts that the PPS compounds production by new JV would widen the engineering plastic product portfolio of DSM Engineering Plastics. Since the PPS compounds manufactured by new JV would be marketed and sold across the globe, this would influence the brand equity of DSM Engineering Plastics positively and would augment the company in increasing its customer reach and market penetration in the respective field.

According to the recently published report by TechSci Research, “India Engineering Plastics Market Forecast and Opportunities, 2020”, India engineering plastics market is projected to exhibit a CAGR of over 13% during 2015 – 2020. Engineering plastics are used in India in diverse industries such as automotive, electrical & electronics, construction, etc. Engineering plastics market in India is segmented on the basis of polymer type into ABS, Polycarbonate, SAN, Polyamide, PBT and Others.