DSM acquires majority share in UHMWPE fiber manufacturer in China
Royal DSM N.V. announced that it 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.
Nico Gerardu, member of the DSM Managing Board and responsible for DSM's Performance Materials cluster said: "China is a key market for DSM and we will continue to grow our long term commitment to it. We have invested significant time and effort to identify the right partner to ally with for this acquisition and we are extremely excited about the prospect of bringing ICD into the DSM portfolio."
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