20 January 2010 12:49 [Source: ICIS news]
LONDON (ICIS news)--DSM Specialty Intermediates (DSI) will discontinue its operational activities by 31 December 2010 at the latest due to increasing competition from China and India, the Dutch chemical company said on Wednesday.
DSI added that its production activities at the Chemelot industrial site at Sittard-Geleen, the Netherlands, would be stopped with effect from 1 July 2010 as a consequence, resulting in the loss of 37 jobs.
The prices and margins for the intermediates DSI produces and sells for the automotive, food and pharmaceutical industries have been under heavy pressure for a number of years, the company said.
A number of DSI production plants were closed in 2007 and the remaining facilities had been integrated with other DSM plants in order to make the business unit financially healthy, the company said.
DSM said that despite efforts to make DSI structurally profitable, the only option left was to close operations.
After production activities were stopped, the product stocks would be used to meet remaining supply obligations, DSM added.
DSM has asked the local works council for advice on the intended closure and said it aimed to offer the redundant employees alternative positions within the company.
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