DSM Selling Agro, Melamine Units

As part of its strategy to focus on materials and life sciences, DSM is selling its DSM Agro and DSM Melamine units to Cairo-based Orascom Construction Industries for $420 million. DSM Agro has the capacity to make 1.6 million metric tons of nitrogen fertilizers per year at its plant in Sittard-Geleen, the Netherlands. The unit generated $460 million in sales in 2009. DSM Melamine is the largest producer of melamine—a urea derivative used in laminate flooring and housewares—in the world. The unit had $200 million in revenue in 2009. Orascom operates a fertilizer facility in Egypt and is building another one in Algeria. Last year, DSM sold its energy pipeline and exploration unit, DSM Energy, to Abu Dhabi National Energy (TAQA). In addition to DSM Agro and DSM Melamine, other units that DSM has designated as noncore assets include those producing elastomers, citric acid, and maleic anhydride.