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DSM expands in China

  • Friday, 9th December 2005
  • Reading time: about 2 minutes

DSM Composite Resins will be expanding its sizing production capacity in China for composite resins by building a sizing plant on the existing DSM production site Xinghuo in Shanghai.

In building a new plant, DSM Composite Resins is anticipating market growth in sizings and binders for the glass fibre market. DSM plans to start up the new facility in the second half of 2006 and the capital budget is estimated at around $8 million US.

With this investment, the sizings capacity of DSM will be expanded by 50%. The new plant will primarily serve the Chinese market, but will also serve the rest of Asia.

“This expansion is again a step in the context of DSM’s new strategy Vision 2010 – Building on strengths”, comments Jan-Paul de Vries, Business Group Director DSM Composite Resins. “It serves two key strategic targets: growing our specialty portfolio in the Performance Materials cluster and expanding our presence in the emerging Chinese market. The investment in a new facility provides an accelerated growth path into the Chinese composite resins market, from which our new and existing customers will benefit.”

The glass fibre market in China is growing rapidly; there are both strong Chinese Glass Fiber producers and Global Glass Fiber producers that are growing fast in China. The global market growth for glass fibre is estimated at 5% per year whereas the Chinese market is growing at a pace of 10-15% per year.

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