DSM to exit aspartame arena
The company will terminate its activities at the end of 2006 and as a consequence will discontinue the production of aspartame in the fourth quarter of 2006.
30/03/06 Holland Sweetener Company (HSC) has announced its decision to withdraw from the aspartame business, including Twinsweet. HSC is a 50/50 joint venture between Royal DSM N.V. (the Netherlands) and Tosoh Corporation (Japan). The company will terminate its activities at the end of 2006 and as a consequence will discontinue the production of aspartame in the fourth quarter of 2006. DSM said that it does not expect the decision to have a material impact on its overall corporate financial performance in 2006. In Q1 2006 DSM will however record an exceptional item of approximately EUR10 million net in relation to this decision.
DSM reported that the global aspartame markets is facing structural oversupply, which has caused worldwide strong price erosion over the last 5 years. This has resulted in a persistently unprofitable business position for HSC. No significant improvements are expected in the near or foreseeable future. The decision to withdraw from this business 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 HSC’s business operations will affect around 100 jobs on the site in Geleen (the Netherlands). DSM expects to be able to re-assign the majority of these people to other positions. The social plan of DSM Limburg is applicable.
Holland Sweetener Company (HSC) was established in 1985 as a 50/50 joint venture between DSM (the Netherlands) and Tosoh (Japan). A unique aspartame process was developed using technology from both parents. In 1988, the first aspartame production unit was started up in the Netherlands, with subsequent expansions making HSC the largest aspartame producer in Europe. Twinsweet (made from the intense sweeteners, aspartame and acesulfame) was discovered in 1995 as part of a research program to develop aspartame-based new sweetener concepts for the food and nutraceutical industries.
