DSM - Over a century of evolution

There are few companies, and even fewer successful chemical companies with a history to match that of DSM. Companies that have changed so much over time, reinvented themselves, repeatedly adjusted to changing circumstances and that, like us, are still fulfilling the promise of those modest beginnings in 1902. This was when the Dutch government formed the nationalized coal company 'De Nederlandse Staatsmijnen' (Dutch State Mines), later becoming DSM.

As the mining operation grew so did the company's coal-processing operation. This gave rise to a growing by-product, coke oven gas. This was converted into a profitable commodity, ammonia, an ingredient in nitrogenous fertilizers. By diversifying in this way, DSM avoided the fate that would ultimately close down so many coalmining operations.  

In the post-war era, chemical products became more prominent. Once again, DSM saw an opportunity and seized it, providing industrial chemicals and raw materials for synthetic fibers and yarns. It was not long after this that worldwide use of coal began to decline; oil and natural gas were much more profitable and coal was more polluting. By the 1960s, coal production was waning sharply and in 1975, the Dutch Prime Minister officially closed the country's last mine. Fortunately, DSM had anticipated this and quickly started changing its focus. By 1970 chemicals and fertilizers comprised the company's chief activity, accounting for two-thirds of its turnover. Petrochemicals then took center stage. In just twelve years profits from raw materials for plastics grew by a factor of fourteen. No mean feat in view of the fact that DSM had to fight its way into a market dominated by major companies with long-established names.

In the 1970s and '80s DSM underwent major reorganizations to ensure itself of sufficient scale, greater guarantees for market consumption, and diversification into high-quality plastics and fine chemicals. After 1985, DSM developed a series of ambitious innovation projects resulting in specialties such as the polyethylene fiber Dyneema, the strongest fiber on earth.

In 1989 DSM was privatized and listed publicly. During the 1990s, the company paid greater attention to creating a balance between commerce and research and developing value-adding processes and products, particularly products for the pharmaceutical and the food industries and performance materials for the automotive and transport industry and the electrics and electronics sector.

• In 2002 DSM completed the sale of its petrochemicals operation in anticipation of future market movements.
• This was followed by the acquisition of Roche's Vitamins & Fine Chemicals Division in October 2003, which was subsequently renamed DSM Nutritional Products.
• In February 2005 NeoResins, the coating resins business of Avecia was purchased. Now known as DSM NeoResins, this acquisition forms part of DSM Resins, a business group in the performance materials cluster.
• In July 2005 this acquisition was followed by the sale of DSM Bakery Ingredients to the Dutch investment company Gilde Investment Management.
• In October 2005 DSM acquired the Chinese resins company Syntech.
• In July 2007 DSM acquired Pentapharm Holding Ltd., which manufactures active ingredients and system solutions for the cosmetics industry and is also present in niche pharmaceutical and diagnostics markets.