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16. September 2021

DSM: Possible sale of Materials businesses

On 14 September 2021, Royal DSM announced it is simplifying its operating structure and reorganising its Health, Nutrition & Bioscience activities into three Business Groups. At the same time, DSM confirmed it has started a review of strategic options for both Materials businesses, including a possible sale. The Materials cluster comprises DSM Engineering Materials and DSM Protective Materials. The cluster comprises a portfolio of speciality materials for global end-markets including electrical components and electronics, automotive, food packaging, medical, personal protection, commercial marine and apparel. 

DSM said the Materials businesses will likely not be able to maximise their full potential to drive the important industrial shift to a bio-based and circular economy. Going forward the Materials Business Group will therefore be managed largely on a stand-alone basis and the global support functions will be re-aligned accordingly. DSM said it is reviewing strategic options for both Materials businesses, including a possible change of ownership.

At the centre of DSM’s transformation is the creation of three market-focused Business Groups. Each Business Group will be much closer aligned with their respective customers and, through the integration of activities currently performed by the DSM Innovation Center, will be fully equipped to rapidly develop impactful science-based market-ready innovation. The new Business Groups will be:

  • A Food & Beverage Business Group that combines the food, beverage and pet food activities of the current DSM Food Specialties and DSM Nutritional Products divisions. This Business Group, representing more than EUR 1 billion in existing sales, will be uniquely able to meet the needs of customers and consumers by developing sustainable taste, texture, and health solutions. The Business Group’s portfolio includes breakthrough innovations such as EverSweet, a natural calorie-free sweetener, and CanolaPro, a plant-based alternative protein. It will also be home to the dairy-based flavourings from First Choice Ingredients, pending regulatory approval of this recently announced acquisition.
  •  A Health, Nutrition & Care Business Group with about EUR 2.5 billion of sales, aiming to keep the world’s growing population healthy through nutrition and care. As the leading player, and in close collaboration with its customers, this Business Group provides unique, sustainable, science-based and innovative solutions for consumers in early-life nutrition, dietary supplements, pharma, medical nutrition, personal care, fragrances, biomedical materials, and nutrition improvement for the most vulnerable communities. It includes a rich innovation portfolio including ampli-D, the rapid-acting and potent form of vitamin D, an extensive algal lipids portfolio, personalised nutrition initiatives such as Hologram Sciences, as well as Glycom, the world's leading supplier of HMO-prebiotics.
  • An Animal Nutrition & Health Business Group with more than EUR 3 billion in existing sales that will focus on specialty solutions for a radical, yet achievable, transformation in the sustainability of animal protein production. Incorporating essential products such as vitamins and carotenoids, the recently acquired Erber Group, one of the world’s largest suppliers of eubiotics and market leader in mycotoxin risk management, as well as a wide range of impactful innovations such as methane inhibitor Bovaer and fish-oil algae-alternative Veramaris. This Business Group also includes precision initiatives with data-driven decision-making tools for famers like Sustell, and for veterinarians and animal health practitioners like Verax.

The company recently announced an acceleration in its greenhouse gas emissions reduction target. DSM now aims to reduce emissions from its own operations by 50 % by 2030, a significant step-up from the original target of 30 % and based on strong progress during recent years.


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