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Fengxi and DSM form Melamine JV in Shanxi.

China Chemical Reporter • March 16, 2008 • New Setup, Agreement & Plan

On February 28th, China's large coal chemicals producer--Fengxi Fertilizer Industry (Group) Co., Ltd. and the world largest melamine supplier DSM Melamine B. V. jointly announced the establishment of their joint venture--Shanxi Fenghe Melamine Co., Ltd. which will produce melamine in Yuncheng, Shanxi province of northern China.

The 51/49 joint venture between Fengxi and DSM Melamine has a registered capital of RMB 100 million, headquartered in Shanxi Yuncheng Economic Development Zone, will reach a melamine production capacity of 52 thousand t/a in 2008. DSM Melamine will sell melamine mainly in the domestic market and other markets.

Fengxi said the cooperation with DSM fits very well with its strategy of expanding and becoming strong, actively in internationalization and developing in both fertilizer and chemical businesses.

According to DSM, this step enables DSM to take a substantial market share in the fastest growing melamine market in China. DSM's customers in China have previously been supplied by its plants in Indonesia and Europe.

DSM Invests in Development of Bio-based Materials

On March 5th, DSM Venturing, the corporate venturing unit of Royal DSM N.V., announced that it has participated in a US$20 million financing round in Tianjin Green Bio-Science Co., Ltd. (TGBS). The proceeds will be used to build China's largest manufacturing plant for polyhydroxyalkanoates (PHA) in the Tianjin Economic Development Area (TEDA).

In parallel with the venture investment, DSM and TGBS intend to work together to create new business in bio-based performance materials. At present TGBS has developed based on its PHA varieties of fiber, film and lamina, and has patented its proprietary technologies and established competitive advantage. TGBS plans to build the manufacturing plant with the PHA capacity of 10 000 t/a.

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.


COPYRIGHT 2008 China National Chemical Information Center Reproduced with permission of the copyright holder. Further reproduction or distribution is prohibited without permission.
Copyright 2008 Gale, Cengage Learning. All rights reserved. Gale Group is a Thomson Corporation Company.
NOTE: All illustrations and photos have been removed from this article.


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