DSM builds fourth Dyneema production line in the Netherlands and second Dyneema UD production line in the USA

Market for world's strongest fibre growing beyond expectations

08-Feb-2001

DSM High Performance Fibers, the producer of Dyneema superstrong polyethylene fibre, is going to expand its production capacity by building its fourth production line. The 600-tonne/year facility will be located at the existing Dyneema production plant in Heerlen (Netherlands). DSM is making this investment on top of a debottlenecking operation in its current three production lines, which will boost annual capacity by 400 tonnes in 2001. The fourth Dyneema production line will come on stream this year. DSM is also expanding production capacity for Dyneema UD (used in personal protection equipment and vehicle armour plates). The second, 400-tonne/year production line for this product will be built in the USA. It will come on stream after the summer. The total investment involved in the expansions amounts to about EUR 30 million. DSM has also initiated an engineering study into the construction of a new Dyneema fibre plant in the USA.

Vision 2005

"The market for Dyneema is growing even faster than we anticipated," says Peter Elverding, chairman of the DSM Managing Board. "These investments will enable the Dyneema business to implement its growth strategy at an accelerated pace. The investments in these high performance products fit in very well with our strategy Vision 2005: Focus and Value." This strategy, presented in September 2000, outlines DSM's objectives for the next few years. Elverding: "By the year 2005 DSM wants to rank among the world's leading players in high-added-value specialties. To this end, DSM is transforming itself into a company specializing in advanced chemicals, biotechnological products and performance materials. Vision 2005: Focus and Value will increase our focus on global leadership positions in businesses with a high added value, low cyclicality, strong growth and stable profits."

Debottlenecking

"The US market is very impressed by the performance of our products," says Pieter Greidanus, director of DSM High Performance Fibers. "Our existing Dyneema fibre and Dyneema UD production lines are already running flat out, but they cannot keep up with demand. If we want to continue to meet our customers' needs, we need to add new capacity fast."

Part of the capacity increase will be achieved via debottlenecking of the Heerlen-based facilities, which will raise current capacity (1,500 tpa) by 30% this year. In view of the continuing high demand DSM High Performance Fibers has decided to build two new production lines, one for Dyneema fibre and another for Dyneema UD. This will bring total fibre capacity to 2,600 tpa and will raise Dyneema UD production capacity by 400 tpa. Further expansion of fibre capacity in the USA is expected in 2002/2003.

Dyneema UD very well received in the USA

DSM has been very successful in the US ballistic protection market over the last year. "The US military and police forces are very enthousiastic about our Dyneema UD products," says Frank Schaap, director of marketing & sales Ballistics at DSM High Performance Fibers. "From the outset it was clear that any new capacity would be built in the USA, to enable us to keep up with demand growth." Schaap emphasizes that the new customers in the US market benefit from DSM High Performance Fibers' many years of experience with Dyneema in the European, Asian and South-American markets: "Dyneema UD has saved many lives in these regions."

Dyneema

Dyneema® is a superstrong polyethylene fibre developed by DSM. It is manufactured by a gel spinning process, also a DSM invention. This technology, which has been patented worldwide, yields the world's strongest fibre: up to fifteen times stronger than steel and forty percent stronger than aramid fibres. Dyneema moreover has a low density (it floats on water), a high resistance to abrasion, moisture, UV radiation and chemicals and a high energy-absorption capacity, which explains why Dyneema fibres can stop bullets.

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