Market Updates

DSM Focuses Vitamin C Production in U.K.

DSM Nutritional Products, Heerlen, the Netherlands, has formed a new strategy for the production of vitamin C. It will concentrate its production of bulk vitamin C in Dairy, Scotland, U.K. As a consequence, DSM will close its plant for bulk ascorbic acid in Belvidere, NJ. Currently investments are being made to upgrade the Dairy plant within the scope of the Vital Project, the integration and transformation program of the company. According to the company, this will lead to cost reductions and allow for increased raw material flexibility. At the same time DSM is developing flexible sourcing options, including recent intended alliances in China. Closure of the Belvidere site is expected in the third quarter of 2005. The plant will be adjusted to optimize the production of specific product formulations for the North American and other markets. DSM will continue to produce its other products at the Belvidere site, such as formulations for other vitamins and arachidonic acid for baby formulations.

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