Despite the economic downturn DSM's Vision 2010 strategic targets are mostly achieved. The portfolio transformation to Life Sciences and Materials Sciences is finalized, and DSM will now drive focused growth, the company said in a press release.
Commenting on the strategy announcement, Feike Sijbesma
, CEO/Chairman of the DSM Managing Board, said: "We are very proud of what we have achieved with our Vision 2010 strategy over the past five years.
“We have met most of our targets but even more importantly, we have demonstrated that we made the right decisions for the long-term future of the company. With our transformation into a Life Sciences and Materials Sciences company largely completed, our focus now is on growth."
Four economic drivers
"We have set ambitious sales and profitability targets. To realize these, we will take all four growth drivers, which are High Growth Economies, Innovation, Sustainability and Acquisitions & Partnerships, to the next level.
“By strengthening our regional presence, we will further adjust our organization to become truly global. As we enter this new and exciting phase for our company I have every confidence our 22,000 employees will deliver on our objectives."
DSM's ambition is to accelerate growth in high growth economies. DSM expects the high growth economies to contribute from currently ~32% towards 50% of DSM's total net sales by 2015.
Over 70% of DSM's total growth in the period to 2015 is expected to come from high growth economies. DSM will continue its strong focus on China and expects to more than double its China sales to > $ 3.0 billion by 2015, supported by intended capital expenditures of $1 billion.
Anton Robek(1959), most recently President and CEO of DSM Melamine, will be appointed as Senior Vice President of DSM's Emerging Business Area (EBA) DSM Bio-based Products & Services with effect from 1 January 2011. Anton Robek will report to Mr. Rob van Leen, DSM's Chief Innovation Officer.
Volkert Claassen(1953), currently Vice President DSM White Biotechnology, has been appointed Vice President Strategy & Growth Options of the DSM Innovation Center and Vice President Strategy & Partnerships of DSM Bio-based Products & Services.
Citrique Belge sold to Adcuram
The intended sale of Citrique Belge to privately owned industrial holding Adcuram is a result of DSM's ambitions to focus on Life Sciences and Materials Sciences.
As announced in September 2007, DSM's citric acid interests do not fit with this focus. After the closure of DSM's citric acid manufacturing plant in Wuxi (China) in Q1 2009, DSM's citric acid business consisted only of the Citrique Belge operations, located in Tienen (Belgium).
Financial details were not disclosed. Net sales of Citrique Belge in 2009 were above € 100 million. DSM expects to report a book loss of around € 40 million as a result of the transaction, albeit the transaction represents a very reasonable multiple on profits made by the unit. Approximately 250 employees will transfer to the new owner upon closing.
Acquisition of Microbia carotenoids
DSM acquired Microbia, Inc. based in Lexington, Massachusetts, USA from Ironwood Pharmaceuticals, Inc. No further details were given.
Microbia is a successful industrial biotechnology research and development specialist. It has developed a highly effective technology platform that enables it to produce high-quality, natural carotenoids (including β-carotene and canthaxanthin), nutritional products and other specialty materials and chemicals from renewable resources.
Microbia’s sales are still limited. The acquisition will allow DSM to incorporate Microbia’s proprietary platform and world class research and development capabilities and support DSM’s ongoing development of the natural carotenoids market.