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DSM Opens 10 Million State-of-the-art Process Flavor Facility in China

Shanghai, March 27, 2007 – DSM has announced the opening of a new, state-of-the-art process flavours plant in China. Based in Xinghuo, near Shanghai, the fully-functional facility will bring major benefits to new and existing customers and demonstrates DSM’s commitment to the Chinese market. The plant will double the company’s production capacity, making it the world’s largest independent producer of process flavours, and will enable DSM to offer its customers a wider product range including process flavours with milder roasted and boiled notes.

Commenting on the opening of the plant, Xander Wessels, Business Group Director DSM Food Specialties said: “We are delighted to see our investment in process flavours come to fruition after considerable investment and effort by the company, its partners and suppliers. The new plant opening is a testament to our ambitious growth plans and fits closely with the objectives of our strategy Vision 2010 – Building on strengths. The launch of this new facility serves two purposes: growing our product portfolio and expanding our presence in the emerging Chinese market. We have seen a significant growth in demand for process flavours over the past few years, so we are delighted that we can now provide our customers with a range of high-quality ingredients through our state-of-the-art plant. ”

DSM has invested heavily in its new Xinghuo plant. Overall investment was in the order of 10 million euro and critical equipment was developed in close cooperation between DFS flavorists, DSM engineers and some key equipment suppliers. The plant operates under a strict cGMP regime, which guarantees high food hygiene standards and the new plant will produce consistently high quality product for the growing Chinese and global markets. Apart from the realization of the new plant, DSM Food Specialties also started a local Chinese business development team in 2006, and opened a local application lab in Shanghai for technical sales support.

“This new process flavours plant underscores DSM’s unwavering commitment to China market,” commented Mr. Jiang Weiming, President DSM China. “It is a significant contribution to the target of increasing our sales to USD 1 billion in 2010 in this strategic emerging market.”

Process flavours are high value building blocks for flavour compositions. These flavour compositions are used in culinary and savoury products such as soups, snacks and ready meals where they provide and enhance specific taste donation like roast pork, sautéed chicken or boiled beef.

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