Mar 7 2008
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.
Babette Pettersen, Vice President New Business Development Performance Materials of DSM, said, “Following earlier announcements on biopolymers, this TGBS investment and intended cooperation complements our ongoing development of bio-based performance materials. This will help to meet the growing market needs for eco-friendly solutions in a range of applications. As PHA is produced through fermentation by micro-organisms, it also offers the opportunity for DSM to extend its competencies both in Life Sciences and Material Sciences to a new family of biopolymers.”
“The investment in Tianjin Green Bio-Science is a further confirmation of DSM’s global venturing strategy, in which China is one of the core regions. Moreover, it shows the company’s commitment and dedication to actively promoting China’s sustainable development initiatives, as one of the important elements in building a strong business position in China,” said Weiming Jiang, President DSM China. “The transition from petroleum-based materials to bio-based materials is a major global trend. With our expertise in biotechnology and in performance materials DSM is excellently positioned to facilitate this transition.”
Mr. Lu Weichuan, General Manager of Tianjin Green Bio-Science Co., Ltd. expressed full confidence in the partnership and said, “Through years of research and development, Tianjin Green Bio-Science has reached a leadership position within China for the production, extraction, processing and application of PHA. In addition to its financial investment in this partnership, DSM will also bring its international experience in life science and materials science. This cooperation will definitely speed up our growth and production of world-class biorenewable plastic products.”
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.