Leadership & People

DSM to Close Specialty Intermediates Operation

DSM says it will close its DSM Specialty Intermediates (Sittard, the Netherlands) operation by December 31, 2010 at the latest. The business's activities, located at the Chemelot industrial site in the Sittard-Geleen area, will cease with effect from July 1, 2010, as a result.

The specialty intermediates business produces and sells intermediates for the automotive, food, and pharmceutical industries, which have seen prices and margins erode in the past few years on the back of increasing competition from companies in China and India, in particular. A number of plants within the business were closed in 2007 and the remaining facilities integrated with other DSM plants, to make the business financially healthy. These efforts have not been successful, however, and "it proved impossible to make [the unit] structurally profitable," DSM says.

DSM has asked the local works council for advice on the intended closure, which will result in the loss of 37 jobs. DSM says it will strive to avoid forced redundancies and will offer alternative employment within DSM. Stocks will be used to meet the specialty intermediates business's remaining supply obligations following the closure of production on July 1.

By Natasha Alperowicz

Source: Chemical Week