DSM Nutritional Products to Restructure in China

11/09/07 Royal DSM N.V. has announces that it will restructure the manufacturing activities of DSM Nutritional Products in China and develop the Xinghuo site, Shanghai as a strategic manufacturing base for DSM. As a result of this restructuring, the Gonglu site, also located in Shanghai, will be closed.

At the Xinghuo site, the production of vitamins, intermediates and Teavigo (the pure and natural green tea extract) will be expanded. Furthermore, as a strategic site Xinghuo will also host activities of Desotech, Sizings & Binders (part of DSM Resins) and the savory ingredients plant of DSM Food Specialties. The Xinghuo site will thus rapidly expand to become DSM's largest multi-product manufacturing location in China. The R&D activities at the Gonglu site will be relocated to the new DSM China Campus, the construction of which has just started (3 September 2007).

Jos Schneiders, President of DSM Nutritional Products, comments: "With this restructuring, DSM Nutritional Products is making a big step in its growth strategy in China and in the optimization of its asset base for the future, as already outlined in the 'Aspire to Win' program announced in June 2007". Weiming Jiang, President of DSM China, adds: "This is yet another milestone for DSM China. Shortly after the groundbreaking ceremony of the DSM China Campus, we can now announce that Xinghuo will serve as a strategic manufacturing site for various DSM products, which underlines the importance that DSM attaches to China."

The closure of the Gonglu site is fully supported by the local government. Around 200 people are working at the Gonglu site. A social plan and relocation plan have been prepared.