DSM invests in new Process Flavours plant based on new technology

HEERLEN, NETHERLANDS, Feb 08, 2006 (MARKET WIRE via COMTEX) -- DSM has developed a new way to produce processed flavours that will bring major benefits to customers. The company will invest in a new plant that will be using new semi-continuous technology developed in unique cooperation between DSM's technology engineers and food technologists. The new technology creates the opportunity, not only to produce DSM's existing Maxavor(R) line of roasted products, but also new types with milder notes. Apart from product range extension, the new technology also increases quality consistency as well as product - and food safety.

The new facility will be build on the existing fully-owned DSM nutrition production site in Xinghuo, Shanghai, China, and highlights the company's commitment to its Savoury Ingredients business and recognition of the growing importance of the Asian, especially the Chinese, food ingredients market.

"This investment is again a step in the context of DSM's new strategy Vision 2010 - Building on strengths", comments Feike Sijbesma, member of DSM's Managing Board. "It serves two key strategic targets: growing our specialty portfolio in nutrition and expanding our presence in the emerging Chinese market. The investment in a new facility provides an accelerated growth path into the Asian and Chinese process flavours market, from which our new and existing customers will benefit."

The new plant will double the company's production capacity of process flavours. Capital budget for the investment is estimated around EUR 10 million. Work on the new plant will start in March 2006. Following a rigorous testing and analysis program during 2006, initial production is scheduled for late 2006, with the plant becoming fully operational by April 2007.

Process flavours are used in culinary and savoury products, as soups, snacks and ready to eat meals. In these food products process flavours provide and enhance specific taste donation, like roast beef, sauted vegetables or boiled chicken.

"Demand for our process flavours has increased significantly over the past few years", says Fedde Sonnema, Business Unit Director Savoury Ingredients. "Especially the Chinese food market has grown over the last years far in the double digit numbers. This new plant will support us in our ambitious future growth plans and gives us the opportunity for expanding our presence in the emerging Chinese market."

About DSM Savoury Ingredients

DSM Savoury Ingredients forms part of the Business Group DSM Food Specialties. It provides essential ingredients to create high quality savoury flavours. Its products form building blocks to build excellent culinary taste. DSM's extensive range of ingredients provides basic taste foundation, specific taste direction and superior taste enhancement in a wide variety of savoury applications. DSM Savoury Ingredients' product range includes Savorkey (a clean label, boiled taste profile), Maxavor(R) (clean label roast taste profile), Gistex(R) (basic savoury taste provider) and Maxarome(R) (natural taste enhancer).

About DSM

DSM is active worldwide in nutritional and pharma ingredients, performance materials and industrial chemicals. The company creates innovative products and services that help improve the quality of life. DSM's products are used in a wide range of end markets and applications such as human and animal nutrition and health, cosmetics, pharmaceuticals, automotive and transport, coatings, housing and electrics & electronics (E&E). DSM's strategy, named Vision 2010 - Building on Strengths, focuses on accelerating profitable and innovative growth of the company's specialties portfolio. Market-driven growth, innovation and increased presence in emerging economies are key drivers of this strategy. The group has annual sales of approximately EUR 8 billion and employs around 23,000 people worldwide. DSM ranks among the global leaders in many of its fields. The company is headquartered in the Netherlands, with locations in Europe, Asia, Africa and the Americas. More information about DSM can be found at www.dsm.com

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