DSM Coating Resins to Cease Alkyd Production in Sweden

DSM Coating Resins announced today that it intends to terminate its long alkyd production in Landskrona (Sweden) in the course of 2007. DSM will concentrate production of these compounds, which are used in coating systems for e.g. the architectural and industrial applications, at the sites in Hoek van Holland (NL) and Santa Margarida (Spain).

DSM Coating Resins’ decision was prompted by developments in the competitive landscape in the alkyd industry and changing regulatory requirements. By concentrating production at the sites in the Netherlands and Spain and terminating production at the site in Sweden, DSM Coating Resins will sustain and enhance the cost competitiveness of this business. This decision 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 alkyd production at the Landskrona site will involve the loss of some 50 jobs and will be realized during the course of 2007. Negotiations with labor unions are taking place to establish a social plan in order to find alternative jobs as well as providing financial support during the transition period. One-off costs related hereto will be relatively modest and will be incorporated in the results before exceptional items of Q3 2006.The Landskrona site offices and warehouse will remain open.

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