|
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
|