DSM to close China citric acid plant

27 August 2008 15:07  [Source: ICIS news]

TORONTO (ICIS news)--DSM will close its citric acid plant in Wuxi, China, in the first quarter of 2009, following a request from the local government which needs the site for urban development, the Netherlands-based chemicals producer said on Wednesday.

 

DSM would receive compensation from the Wuxi government and did not expect to record a loss from the closure, it said.

 

The company would not rebuild the plant elsewhere, mainly because of structural overcapacity in the citric acid market, it said.

 

Rather, it would focus on its citric acid plant in Tienen, Belgium, whose competitiveness had improved after restructuring and process optimisations, the company said.

  

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By: Stefan Baumgarten
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