Issue Date: September 1, 2008
... But Closes Chinese Citric Acid Plant
DSM will close its citric acid plant in Wuxi, China, by the first quarter of next year. The local government asked DSM to relocate the plant because it wants the location for future urban development. However, DSM says the citric acid market has been under pressure for several years, mainly due to overcapacity in China. It has decided not to move the plant but instead concentrate its citric acid production in Tienen, Belgium. DSM will receive compensation from the Wuxi government and does not expect to incur a loss. DSM says it is readying the citric acid business for partnership, according to a plan announced a year ago.
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