The chemical companies DSM (HQ: NL-6401 JH Heerlen) and Amoco (USA) signed a contract under which Amoco will license Amoco/Chisso polypropylene manufacturing technology to DSM for a European plant with a nameplate capacity of 150,000 t/y. A final decision to build the new plant will be taken when the basic design is completed, presumably in mid 1995.

DSM: "The polypropylene market is showing strong growth in both existing and new applications. PP replaces other plastics as well as materials such as metal, paper, wood and glass. Even during the recent economic downturn, relatively good growth rates were recorded. Partly on the basis of these market developments, DSM's Polypropylene & Specialty Compounds business unit is considering a capacity expansion at its facilities in Geleen (Netherlands)."

Amoco is a leading PP producer in the USA, as Chisso is in Japan. The gasphase technology now being licensed by DSM was developed by Amoco in collaboration with Chisso. Plants based on this technology are presently operating successfully in the USA and Japan.

With a production capacity of 280,000 t/y, DSM's Polypropylene & Specialty Compounds business unit, forming part of the company's Polymers division, holds a strong position in the European copolymers market. DSM's market strategy for these products is primarily aimed at high-performance automotive applications, consumer articles and durable packagings. The license of the Amoco/Chisso technology will enable DSM to further reinforce its market position.