Royal DSM N.V. announced the start of the construction of a new factory for the production of waterborne acrylic resins in China.
With this investment, around EUR20 million, DSM takes another step in its ambition to realize USD1.5 billion in sales in China in 2010, while at the same time introducing products to the country that contribute to a reduction in harmful emissions.
Waterborne acrylic resins can be used in water-based coatings which do not require volatile organic compounds. These VOCs have negative effects on the environment. Waterborne resins are applied as a raw material in a wide range of products, varying from decorative paints to adhesives.
The new factory will be built in Guangdong on the existing site of DSM Syntech. The factory will be completed in the second quarter of 2008. It will be the first factory in China for the production of waterborne resins for DSM NeoResins.
"With this investment we will be able to offer our waterborne acrylic resins worldwide, which is a major step forward. Furthermore this investment is perfectly in line with the acceleration of DSM's Vision 2010 strategy and our ambitious growth targets in the emerging economies. This investment also matches with our targets to further reduce the ecological footprint of our operations," comments Nico Gerardu, member of DSM's Managing Board and responsible for the Performance Materials cluster.
China currently represents a small, but very promising market for specialty waterborne resins. DSM has good expectations for these resins for the industrial wood & metal coatings as well as for the adhesives and graphic arts markets. This expansion for waterborne resins is one of the first expansions at the DSM NeoResins site in China.