DSM Steps Up Reshaping

A mid-term evaluation of its Vision 2010 strategic plan has led DSM to accelerate its shift toward life sciences products and performance materials. The company says it will maintain only those basic chemicals and polymer intermediates that it uses in its own production. As a result, DSM plans to divest itself of four businesses: melamine and urea, with estimated 2007 sales of $980 million; elastomers, with sales of $700 million; special products, $140 million; and maleic anhydride and derivatives, $105 million. These divestments will result in a reduced presence at the Chemelot chemicals complex, in Geleen, Netherlands, the company confirms, although it intends to invest in its R&D campus on this site. DSM also intends to find a partner for its citric acid business, with estimated 2007 sales of $175 million. The firm earlier stated its desire to partner its bulk antibiotics business. Among other new plans, DSM has earmarked almost $300 million for venture investments. Its latest is an equity investment in the Danish company Upfront Chromatography, which specializes in industrial protein chromatography processes. Separately, DSM will spend more than $40 million to build a plant in the Netherlands for waterborne emulsion resins.