DSM has reached an agreement with Indian SRF to acquire its engineering plastics business. The acquisition is expected to be completed in the third quarter of 2019. SRF produces more than 200 engineering plastics. Its product line includes PA 6 and PA 66, PBT, PC, PET, PPS, PC-PBT alloy, PBT-PET alloy and PC-ABS alloy.
The acquisition will further strengthen DSM's position in India, making it a leader in the field of engineering plastics in this fast-growing economy and achieving its strategic goals. SRF's engineering plastics business was established in 1979. Its main business is located in Panagar, India. In 2018, it achieved sales of approximately $ 37 million, achieving double-digit growth in recent years.
The company's customers are well-known brands in the Indian automotive and electrical and electronics industries. Its business is highly complementary to DSM's business in India, which will allow DSM to further develop its business without making large investments in capital expenditures. With the expected strong market expansion in the coming years, as well as the growing domestic demand of the middle class and the weight loss / metal replacement needs of the automotive industry, this acquisition will help DSM meet the current and future needs of its Indian customers, And save DSM the investment in capacity needed for further growth in India.
In 2018, DSM had approximately 550 employees and total sales in India were approximately 250 million euros, an increase of 17% compared to 2017.