The not entirely unexpected news that the resins division of Dutch chemical group DSM (HQ: PO Box 6500, NL-6401 JH Heerlen) and German plastics pocessor Mitras Kunststoffe GmbH (HQ. D-92633 Weiden) are planning a strategic alliance in glass fibre-reinforced compounds (GFC) nevertheless has sent ripples through the industry. Observers believe it could set signals not only for the GFC sector. It has been suggested that DSM also may be interested in Mitras' SMC business, as this would seem to fit well with the other merged activities.

Subject to approval by the pertinent authorities, a joint venture will be set up on 1 July. Mitras will be swallowed up entirely by the new company, while DSM Resins will contribute its complete moulded parts business, including subsidiaries BWR Bizerba Werkstoffsysteme und Fahrzeugbau GmbH (Werkstr. 2, D-76401 Raststatt), Fiberpachs and Autopress. DSM has sites for compounding and moulding in the UK, Germany, Spain and Italy, while Mitras has a strong market position in Germany and France, and also has compounding facilities in the UK, the Czech Republic, Sweden and Finland.

According to Mitras managing director Rudolf Ignaszak, the new jv will have sales of more than DM 300m. It will focus on the automobile, E&E and machinery manufacturing sectors, as well as the up and coming building components industry, along with Mitras' traditional materials business, He described the internationally strong alliance as "almost ideal," in view of its portfolio, customer base, materials and technology.

Outlining its hopes for the alliance with Mitras, DSM emphasised the need for "further technological development and professionalisation," in order to better serve customers, as well as the need for "market leaders in compounding that possess the required resources and potential" to invest in plant and technology and thus promote the "development of composites from the raw material to complete system integration."