DSM announces plans for largest investment program ever for Dyneema®
Program will increase Dyneema® Life Protection capacity over next 2-3
years
Royal DSM N.V., the global Life Sciences and Materials Sciences
company headquartered in the Netherlands, today announces plans for a
substantial capital expenditure program, expected to involve up to
USD 450 million. This will increase production capacity in its
Dyneema® business, enabling DSM to capitalize on expected continuous
growth in demand in the United States for the world's strongest
fiber(TM). DSM Dyneema's sales have grown by more than 15% per year
in recent years and DSM expects the business group to accelerate its
growth path.
Engineering studies have now commenced for the planned investment
program, which is expected to involve several phases of
implementation over the next 2-3 years. The expansion is expected to
result in a significant increase in DSM's US production capacity for
the Life Protection market and will also include new breakthrough
technology for ballistic and other applications. This will be the
largest investment program since the start of large-scale production
of Dyneema®.
This planned capital expenditure program is another step in a series
of significant investments DSM has made in its Dyneema® business in
recent years. In October 2007 a 25% increase in production capacity
in the US Life Protection business was announced. More recently, in
March 2008 DSM welcomed the start-up of its latest Dyneema® fiber
production line in Greenville (North Carolina). The first additional
line of this new multi-stage investment program is expected to be
operational in 2009. The majority of the investments are likely to be
in the United States.
"This milestone investment program shows DSM's commitment to
performance materials that help provide safety and protection for
people worldwide," said Feike Sijbesma, Chairman of the DSM Managing
Board. "This program shows we are focused on market-driven growth and
innovation, one of the key pillars of DSM's strategy, Vision 2010 -
Building on Strengths."
"With this investment program we underscore our commitment to
supporting our customers in the US market through continuous growth
and innovation," said Nico Gerardu, member of DSM's Managing Board
and responsible for the Performance Materials cluster.
"We are proud that our lightweight, tough Dyneema® is increasingly
being used by customers in the highly demanding Life Protection
market in applications for vehicle and personal protection. DSM
continues to expand its global capacity of Dyneema®, the world's
strongest fiber(TM), to maintain its world leadership position," said
Christophe Dardel, Business Group Director of DSM Dyneema.
DSM Dyneema
DSM Dyneema is the inventor and manufacturer of Dyneema®, the world's
strongest fiber(TM). Dyneema® is an ultra strong polyethylene fiber
that offers maximum strength combined with minimum weight. It is up
to 15 times stronger than quality steel and up to 40% stronger than
aramid fibers, both on weight for weight basis. Dyneema® floats on
water and is extremely durable and resistant to moisture, UV light
and chemicals. The applications are therefore more or less unlimited.
Dyneema® is an important component in ropes, cables and nets in the
fishing, shipping and offshore industries. Dyneema® is also used in
safety gloves for the metalworking industry and in fine yarns for
applications in sporting goods and the medical sector. In addition,
Dyneema® is also used in bullet resistant armor and clothing for
police and military personnel. Dyneema® is produced in Heerlen (The
Netherlands) and in Greenville, North Carolina (USA). DSM Dyneema is
also a partner in a high modulus polyethylene (HMPE) manufacturing
joint venture in Japan. Further information on DSM Dyneema is
available at www.dyneema.com and www.implantmorestrength.com.
DSM - the Life Sciences and Materials Sciences Company
Royal DSM N.V. creates innovative products and services in Life
Sciences and Materials Sciences that contribute to the quality of
life. DSM's products and services are used globally in a wide range
of markets and applications, supporting a healthier, more sustainable
and more enjoyable way of life. End markets include human and animal
nutrition and health, personal care, pharmaceuticals, automotive,
coatings and paint, electrics and electronics, life protection and
housing. DSM has annual sales of almost EUR 8.8 billion and employs
some 23,000 people worldwide. The company is headquartered in the
Netherlands, with locations on five continents. DSM is listed on
Euronext Amsterdam. More information: www.dsm.com.
Dyneema® is a registered trademark of Royal DSM N.V.
For more information:
DSM Corporate Communications DSM Investor Relations
Herman Betten Hans Vossen
tel. +31 (0) 45 tel. +31 (0) 45 5782864
5782017 fax +31 (0) 45 5782595
fax +31 (0) 45 e-mail
5740680 investor.relations@dsm.com
e-mail media.relations@dsm.com
