Dutch chemical giant Royal DSM has signed a historic agreement with Sinopec for the building of what will be the world’s largest composite material resin factory.
Construction is expected to begin in the second quarter of 2011, with completion scheduled for early 2012. The factory shall have an annual production capacity of 100,000 tons, going some way toward satisfying demand for composite material resins that is thought shall grow from 1 million tons in 2010 to 1.7 million tons by 2015.
The new venture adds further clout to DSM’s share in its joint venture in Nanjing; some 75% compared to 25% for the China Petroleum and Chemical Corporation (Sinopec). The balance of power in DSM’s favour comes as a result of an agreement reached in 2002 whereby DSM acquired another 25% of shares in the Jinling-DSM Resins Ltd. (JDR) joint venture. The history of DSM in Nanjing dates back to 1996 when it became partner in the joint venture with Sinopec, after taking over what was then BASF
