DSM TO DOUBLE CAPACITY FOR ENGINEERING PLASTICS IN CHINA

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DSM TO DOUBLE CAPACITY FOR ENGINEERING PLASTICS IN CHINA
17 August 2006 - DSM Coating Resins

Royal DSM N.V. today announces the opening of its new compounding site for engineering plastics at Jiangyin in the Jiangsu province of China on April 26, 2006. This project will double the total capacity for the product lines Stanyl PA46, Akulon PA6 and Arnite PBT. These materials are used in manufacturing key molded components for the automotive, electrical and electronics, consumer and industrial segments.

DSM has continued its solid growth in China during the last decade by offering innovative, value-added application solutions to its customers. The new manufacturing facility illustrates DSM’s long term commitment to the Chinese market. It provides the Chinese customers with local access to DSM’s global technology, and will further improve customer service levels.

The new manufacturing facility uses leading edge compounding technology and is fully equipped with best-in-class safety, health and environment compliance systems. This new facility will meet the growing local demand of the Chinese market and serve as a prime sourcing base for the Asia Pacific region. The facility design allows for additional capacity expansion to accommodate further growth in demand in the future.

“We have managed to develop and grow our business in China very fast over recent years. This project is an important new step in the context of DSM’s strategy Vision 2010, Building on Strengths. It serves two key strategic targets: market-driven growth and innovation in the Performance Materials cluster and expanding our presence in the emerging China market .” comments Nico Gerardu, member of the Managing Board of DSM N.V.

The project includes the expansion of DSM Engineering Plastics’ Regional Development Service Center. This will further enhance DSM’s capability to offer technical and design support to its customers, specifically in China and within the region

http://www.dsm.com/en_US/html/dcr/home.htm

About: DSM Coating Resins
DSM Coating Resins is one of the business groups making up DSM’s Performance Materials cluster. It specializes in the development, manufacture and sale of resins for coating systems. It is a global supplier of polyester resins for powder coatings, can coatings and coil coatings. The company also plays an important role as a resins supplier to the decorative coatings market, protective and maintenance coatings market, and industrial coatings markets. DSM Coating Resins has production sites in many countries in Europe, North America and Asia.

DSM's activities are grouped into three clusters: Life Science Products, Performance Materials and Industrial Chemicals. DSM Nutritional Products will remain a seperate entity for the time being. The group has annual sales (pro forma, including the recent acquisition - renamed DSM Nutritional Products) of approximately EUR 8 billion and employs in the region of 25 000 people around the world. Its headquarters are based in The Netherlands.

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