DSM, Rostekhnologii to cooperate on biotechnology

By Royal DSM | April 18, 2013

Royal DSM, the global life sciences and materials sciences company, has announced that it has signed a memorandum of understanding (MOU) for a strategic partnership with Rostekhnologii (Rostec), 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 a 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 bio-based 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 Uni-Directional products based on Ultra High Molecular Weight PE-fibers in Russia using DSM’s proprietary technology for life protection applications.

“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,” said Vladimir Artyakov, deputy CEO of Rostekhnologii.

“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,” said Feike Sijbesma, CEO and chairman of the DSM Managing Board, said:

For DSM, Russia is one of the High Growth Economies the company is focusing on in executing its strategy DSM in motion: driving focused growth. 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.

In 2010 DSM started a joint venture in Tatarstan to contribute to Russia’s goal of reaching a higher self-sufficiency in animal protein production and supply by securing better animal nutrition. In 2011 DSM entered into a long-term partnership in the area of engineering plastics with JSC KuibyshevAzot in Tolyatti (Samara Region) in order to supply locally produced products to the automotive and electrical & electronics industries.