DSM ANNOUNCES MAJOR CAPACITY EXPANSION FOR STANYL

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DSM ANNOUNCES MAJOR CAPACITY EXPANSION FOR STANYL
20 October 2004 - DSM Engineering Plastics

DSM Engineering Plastics has announced two further capacity increases for its successful range of Stanyl high performance polyamide products.

The first of these capacity increases is a debottlenecking project at the Stanyl polymer production plant in Geleen. This project, which has already been announced, is expected to be completed in Q4 2004 and will yield an additional 20% capacity.

At the same time engineering has started for a second Stanyl production plant, able to deliver up to 100% additional capacity, for start-up in the second half of 2007. The preferred location for this plant is Geleen, integrating it with the existing plant. However, an alternative site in China is also being evaluated. A final decision for the investment and the location of this plant will be made in the latter half of 2005.

Debottlenecking of the current DAB (DiAminoButane) plant in Geleen will provide the required additional raw material - which can be shipped to the new Stanyl 2 plant, wherever it will be built.

According to Jos Goessens, Business Group Director for DSM Engineering Plastics, these capacity increases aim to maintain further Stanyl growth. 'We are realising a sustained steep growth in sales of Stanyl and these capacity investments support this growth. Stanyl is a high performance, high temperature polyamide which has an unmatched combination of the performance of high heat resins with the ease of processing and design usually found with standard engineering plastics. The unique features of Stanyl deliver value to customers across a broad range of applications in automotive, electronics and other high-end industries and this is creating strong demand growth. Stanyl contributes to component cost reduction, delivers longer component lifetimes and improves reliability. It is also in the forefront of innovations in many new applications for plastics, like infill panels in aircraft engines, connectors for the telecom and electronics industries, automotive sensors for use under the hood and electronic throttle control gears in new Japanese cars. Stanyl serves a global market with sales well balanced between the three regions of Americas, Asia and Europe.'

He added: 'Stanyl delivers the best performance of all high temperature polyamides in demanding applications and often outperforms other high-heat polymers such as Polyphenylene Sulphide (PPS) and Liquid Crystal Polymers (LCPs).'

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About: DSM Engineering Plastics
DSM Engineering Plastics is a business group forming part of DSM's Performance Materials cluster. DSM EP is a global supplier of Stanyl PA46 and Akulon 6 and 66 polyamides, Arnitel TPE-E, Arnite PBT and PET polyesters, Xantar polycarbonate, Yparex extrudable adhesive resins, and Stamylan UH Ultra High Molecular Weight PE. These materials are used in technical components for electrical appliances, electronic equipment and cars, in barrier packaging films as well as in many mechanical and extrusion applications. The business group had annual sales of EUR 566 million in 2003. With Stanyl, it is the global market leader in high heat polyamides.

Stanyl is a family of heat-resistant polyamides from DSM Engineering Plastics. Stanyl’s high crystallinity (70% versus 50% for conventional PA66) results in high heat distortion temperatures of 190C for unreinforced grades, up to 290C for reinforced. Stanyl grades are used in automotive clutch plates, charge air coolers, chain tensioners; electrical components including motor frames and end laminates, circuit breakers, controls and connectors; and home and power tool components, including heat shields and heat-resistant utensils.

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