KuibyshevAzot OJSC (KA), one of the leading chemicals companies in Russia, and Royal DSM, a global science-based firm, have formed two new joint ventures.
DSM Engineering Plastics owns a majority share in both the ventures, which are related to the manufacture of engineering plastics compounds in a facility based in Togliatti, Russia and sales and marketing of engineering plastics in Russia and other associates of Commonwealth of Independent States. The joint venture focuses on both high viscosity and compounds applications of polyamide 6 (PA6).
As part of the collaboration, KA has secured a license for DSM Fibre Intermediates' cyclohexanone technology. This technology will be used at KA's caprolactam facility in Togliatti to boost the production capacity and to address the increasing demand for cyclohexanone (polyamide 6 intermediate).
In addition, DSM Engineering Plastics has purchased 80% rights in the engineering plastics compounding facility situated at KA's Togliatti manufacturing site. DSM will receive royalty income for more than 15 years through the licensing agreement.