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DSM concentrates alkyd production in the Netherlands and Spain, terminating production in Landskrona, Sweden

Published on 2006-09-05. Author : SpecialChem

Heerlen,NL -- DSM Coating Resins announced that it intends to terminate its long alkyd production in Landskrona (Sweden) in the course of 2007. DSM will concentrate production of these compounds, which are used in coating systems for e.g. the architectural and industrial applications, at the sites in Hoek van Holland (NL) and Santa Margarida (Spain).

DSM Coating Resins' decision was prompted by developments in the competitive landscape in the alkyd industry and changing regulatory requirements. By concentrating production at the sites in the Netherlands and Spain and terminating production at the site in Sweden, DSM Coating Resins will sustain and enhance the cost competitiveness of this business. This decision is in line with DSM's Vision 2010 - Building on Strengths strategy, in which profitable innovative growth and value creation are key objectives.

The termination of alkyd production at the Landskrona site will involve the loss of some 50 jobs and will be realized during the course of 2007. Negotiations with labor unions are taking place to establish a social plan in order to find alternative jobs as well as providing financial support during the transition period. One-off costs related hereto will be relatively modest and will be incorporated in the results before exceptional items of Q3 2006.The Landskrona site offices and warehouse will remain open.

"DSM is committed to remaining a leading supplier to the global coating industry. However, we are witnessing changes in the markets, in part induced by, for example, the new EU regulations regarding increasing restrictions on VOC emissions, which will come into force in the coming years and which are expected to structurally affect demand for alkyd solvent-borne coating systems (commodities). These developments compel us to adapt our production configuration," explains DSM Coating Resins Director Dimitri de Vreeze.

"DSM Coating Resins will continue to invest in innovation and development of value added high quality solvent borne, waterborne and powder coating systems in order to service our customers with products that meet the highest standards of sustainability. At the same time we have to manage carefully our cost base in these highly competitive markets."

DSM Coating Resins

DSM Coating Resins belongs to the DSM Resins business group, which is part of the Performance Materials business cluster of DSM. With production sites in Asia, Europe and the USA, the company is a leading producer of resins for coating systems and supplies resins to the decorative, protective & maintenance, and industrial markets. DSM Coating Resins is a global market leader in polyester resins for powder coatings, can coatings and coil coatings.

Source: DSM Coating Resins

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