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DSM to build new factory for waterborne coating resins in Meppen, Germany


Heerlen, NL, 16-Nov-2006 - Royal DSM N.V. has decided to build a new factory for waterborne coating resins. This new plant will produce polyurethane dispersions to be marketed by DSM Coating Resins and DSM NeoResins. Production will come on stream mid 2007. The total investment costs are up to EUR 20 million.

The new factory will be built at DSM Coating Resins’ existing production site in Meppen, Germany, which produces mainly specialty products like saturated polyesters, epoxy esters and polyurethane resins. The new factory will, amongst other things, produce the specialty polyurethane dispersions that DSM acquired from Hüttenes Albertus Lackrohstoffe in 2004. Polyurethane dispersions are high quality waterborne coating systems. They are experiencing high market growth, mainly because these dispersions do not require solvents that have negative effects on the environment. They are increasingly used in decorative trim coating applications (e.g. DIY paints) and are also used in a variety of other applications such as industrial wood (e.g. parquet coatings) or metal coatings.

Nico Gerardu, member of the Managing Board of DSM N.V., comments: “ The investment is of strategic importance and will further increase DSM’s leadership position in specialty coating resins. Furthermore, it demonstrates DSM’s commitment to supply its customers with innovative waterborne products in order to comply with the forthcoming European VOC legislation. It represents a further step towards the realization of DSM’s ambition of generating EUR 1 billion in innovation-based sales by 2010 within the framework of its strategy Vision 2010 – Building on Strengths.”

About DSM Coating Resins and DSM NeoResins
DSM Coating Resins and DSM NeoResins are part of the DSM Resins business group and specialize in the development and manufacture of resins for coating systems. DSM is a global leader in specialty waterborne resins. Polyurethane dispersions are used in decorative and industrial coating applications, adhesives and graphic arts.

DSM Resins has production sites for coating resins in China (2), the Netherlands (3), Germany, Spain (2), Sweden, Taiwan and the USA (3). DSM Coating Resins has its headquarters and R&D laboratories in Zwolle and those of DSM NeoResins are located in Waalwijk (both in the Netherlands).


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