DSM invests in development of bio-based materials in China
DSM Venturing, the corporate venturing unit of Royal DSM N.V., announced that it has participated in a USD 20 million financing round in Tianjin Green Bio-Science Co., Ltd (China). The proceeds will be used to build China's largest manufacturing plant for Polyhydroxyalkanoates (PHA) in the Tianjin Economic Development Area (TEDA).
The investment is in line with DSM's ambitions to develop bio-based performance materials to meet customers' growing needs for improved performance and environmental benefits at competitive costs. PHA offers, in response to the growing market need for eco-friendly solutions, a new biorenewable polymer platform for a broad range of applications from automotive to biomedical and electronics, including multiple forms like fibers, films and foams.
In parallel with the venture investment, DSM and TGBS intend to work together to create new business in bio-based performance materials.
This investment brings the total number of current company participations of DSM Venturing to 20. Venturing forms an integral part of DSM's open innovation approach, focused on teaming up with innovative players all over the world. The company has earmarked up to EUR 200 million for venturing investments until 2012. China is one of the core regions in the global investment strategy of DSM Venturing.
The plant's construction will commence in Q2 2008, and is expected to start production in early 2009. It will have an annual production capacity of 10,000 tons of PHA.
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