The Hindu Business Line : DSM Engg Plastics plans $20-m facility

Pune March 29 DSM Engineering Plastics is investing $20 million to set up a greenfield facility at Ranjangaon for the manufacture of polyamide and polyester pellets to cater to demand for specialty plastics in the domestic market.

The unit, the company's seventh across the globe, will be located on 25 acres and go on stream by the second quarter of 2008.

The initial installed capacity of 20,000 tonnes annually can be enhanced to keep pace with the 20-25 per cent growth rate of the industry, said Mr Roelof Westerbeek, President (Asia-Pacific).

He added that with accelerated sales in emerging economies identified as one of three important elements for the company's Vision 2010, India was one of two key areas for growth.

The company's products have applications in electronics, building and auto industry, with the last contributing to 35-40 per cent of its Indian business.

The company set up operations is India eight years ago by acquiring the engineering plastics business of Century Enka. It has grown at a CAGR of 30 per cent.

It is a business unit of the Royal DSM group that notches annual sales of $11 billion and has three main clusters of business - performance materials, life sciences and industrial chemicals.

The company is the largest producer of anti-infective penicillin in the country. It also supplies ultra high molecular weight polyethylene used in the manufacture bullet-proof vests for the Army.

The Group has current revenue of $150 million annually, and is aiming to double the figure by 2010.

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