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4/22/2013 | 2 MINUTE READ

DSM and Russian firm to cooperate on biotech and functional materials.

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As part of the agreement, DSM Dyneema and Russian firm RT Chemcomposite will investigate establishment of a joint venture for the production and sales of unidirectional products based on UHMWPE fibers.


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Royal DSM (Heerlen, The Netherlands) announced on April 8 that it has signed a memorandum of understanding (MOU) for a strategic partnership with Rostekhnologii (Rostec, Moscow, Russia), a Russian State Corporation, in the fields of biotechnology and functional materials. The MOU was signed in Amsterdam (Netherlands) in the presence of President Vladimir Putin of the Russian Federation and Prime Minister Mark Rutte of The Netherlands.

Under the terms of the MOU, DSM and Rostec will explore potential cooperation in the field of conversion of cellulosic biomass from forestry and agriculture to fermentable sugars for the production of biofuels and/or biobased chemicals as well as the manufacturing of bio­based products such as bioethanol, biogas and organic acids from sugars derived from cellulosic biomass.

DSM and Rostec will also explore to cooperate in the area of enhancing the performance of Russia’s fast expanding optical fiber networks using DSM’s UV-­curable resins optical fiber materials. In addition, DSM Dyneema and RT­ Chemcomposite, part of Rostec, will investigate the establishment of a joint venture for the production and sales of uni­directional products based on ultra high molecular weight polyethylene (UHMWPE) ­fibers in Russia using DSM’s proprietary technology for life protection applications.

Vladimir Artyakov, Deputy CEO of Rostekhnologii, says, “The cooperation with DSM will accelerate the process of introducing new, unique products in the Russian market to be used in different areas, including biotechnology and functional materials. The partnership with DSM is strategic and intended for the long term.”

Feike Sijbesma, CEO and chairman of the DSM Managing Board, says, “As 2013 was declared a year of friendship between the Netherlands and Russia, this is a perfect occasion to explore opportunities for further cooperation between DSM and Russia. With two joint ventures already in place, I am looking forward to a successful cooperation in several important business areas including the development of advanced biofuels with Rostec.”

DSM’s main business areas in Russia are food and feed ingredients, pharmaceutical intermediate products, biotechnology, fiber materials, resins and engineering plastics. Through its business activities, DSM meets the needs and trends in the Russian Federation, including localization (import substitution), modernization in technologies and diversification (less oil dependence). In 2012, DSM celebrated 20 years of presence in Russia.

Rostec was established in 2007 in order to facilitate the development, manufacturing and export of high­technology industrial products. Today it comprises about 663 companies with activities ranging from automotive to aviation, building, electronics, telecommunications and defense technology. Rostec’s subsidiaries are located in 60 regions of the Russian Federation and supply products to more than 70 countries worldwide. In 2012 net sales amounted to RUB 963 billion (~€24 billion) with more than 900,000 employees.