DSM Acquires Share in Chinese Fiber Manufacturer
Royal DSM N.V., Netherlands, has signed an agreement to acquire the majority shareholding in Shandong ICD High Performance Fibre Co Ltd. (“ICD”), based in Laiwu, Shandong province, China. Closing of this transaction is expected in the course of 2011.
The acquisition of the majority share in ICD will bring complementary manufacturing and technology assets to DSM in addition to strengthening the company’s presence in this key market. The agreement with ICD, a manufacturer of UHMWPE (ultra high molecular weight polyethylene) fiber and a potential strong player in the Chinese market for high performance fibers, concludes an extensive selection process by DSM to find the right company in the Chinese market.
For DSM, the acquisition of a majority share in ICD represents a key milestone in the global development of its high performance materials business, DSM Dyneema. The parties have agreed not to disclose the financial terms of this transaction.
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