DSM today announces that the site services and manufacturing services at the Chemelot industry park in Geleen (Netherlands) will be differently organized in preparation for the previously announced sale of the DSM Agro, DSM Melamine and DSM Elastomers business groups, which forms part of the acceleration of DSM’s corporate strategy Vision 2010 – Building on Strengths.

The core element of the reorganization is that Site Services Chemelot B.V. (infrastructure, security, fire brigade, housing and facility services for the buildings at the Chemelot site), IAZI B.V. (water treatment) and ARBOdienst B.V. (Occupational Health & Safety Services) will be grouped into a newly-to-be-established company. The present DSM Manufacturing Centre (DMC), which provides support to all DSM plants at the Chemelot site, will also become part of the new organization. The new organization will further be managing the current DSM units’ interests in USG B.V. (energy supplier) and CSP B.V. (permit holder for the entire site). The new company will become fully operational in January 2009.

The newly-to-be-established company will in the long term become the employer of all employees who are currently working for the DSM Manufacturing Centre, USG, ARBO and Site Services Chemelot. This concerns approximately 650 employees, who are currently employed by DSM. The setting-up of the new organization will not lead to any redundancies.

Chemelot activities that are related to land & soil management, the development of the Chemelot Industrial Site and the development of the Research & Business (R&B) campus will not transfer to the new organization; they will continue to be part of DSM Nederland B.V.

The new company will have management and support departments to enable all units that will form part of the organization to be effectively managed. The director will report to the shareholders.

The new organizational structure at the Chemelot site is necessary as a preparation for the intended sale of various DSM businesses. With the announcement of the acceleration of its company strategy, Vision 2010 – Building on Strengths, DSM has clearly indicated that it will focus even more on its core activities in Life Sciences and Materials Sciences and on the synergy between these two fields. As a consequence, those units that do not fit in with this strategy are being prepared for sale. The units in question are the clusters DSM Agro/AFA/Melamine and DSM Elastomers and the Urea Licensing of Stamicarbon.

Nico Gerardu, the DSM Managing Board member who is responsible for the sale process, sees the reorganization announced today as an important milestone in the implementation of DSM’s corporate strategy: “The preparations for the process that will lead to the sale of Agro/AFA/ Melamine, Elastomers and Stamicarbon’s Urea Licensing business are in full swing. By clarifying how things are going to be organized at the Chemelot site we have made a very important step. It means that in September 2008, in accordance with our plans, we will be able to start the actual sale process in which we will talk to interested buyers. So we are well on track with the accelerated implementation of Vision 2010 – Building on Strengths.”

As a result of the intended sale, DSM’s share in the direct activities at the Chemelot site will decrease further. After the completion of the sale process, the DSM production plants at the Chemelot industrial site will be those of DSM Engineering Plastics, DSM Dyneema, DSM Fibre Intermediates and the DEX Plastomers joint venture (DSM and ExxonMobil Chemical). Also, together with the Dutch Province of Limburg and other partners DSM is making major investments in strong growth of the R&B Campus, a breeding ground for growth and innovation in Limburg.

In order to provide upfront clarity among potential buyers, it has been decided to transform the site & manufacturing service organizations into a new, separate organization. The shareholders in this organization will be DSM and the future buyers of DSM Agro/AFA/Melamine and DSM Elastomers. The shared ownership will ensure that all direct stakeholders will have a direct say in the management of the new organization.

Jos Schneiders, president of DSM Nederland B.V., explains the solution chosen: “Now that DSM is going to focus entirely on Life Sciences and Materials Sciences, it is important to be very clear about the way the Chemelot site is going to be organized and managed. In this way potential buyers of Agro, Melamine and Elastomers will know straightaway what they can expect. The new model will lead to coherent, powerful and attractive organization. I am convinced that our employees will find the new company an excellent employer.”

The new organizational model has today been submitted to the Central Works Council of DSM Nederland BV for advice. Following the completion of the advisory process, which is scheduled before the summer, a start can be made on the implementation of the new model.

DSM – the Life Sciences and Materials Sciences Company
Royal DSM N.V. creates innovative products and services in Life Sciences and Materials Sciences that contribute to the quality of life. DSM’s products and services are used globally in a wide range of markets and applications, supporting a healthier, more sustainable and more enjoyable way of life. End markets include human and animal nutrition and health, personal care, pharmaceuticals, automotive, coatings and paint, electrics and electronics, life protection and housing. DSM has annual sales of almost EUR 8.8 billion and employs some 23,000 people worldwide. The company is headquartered in the Netherlands, with locations on five continents. DSM is listed on Euronext Amsterdam. More information: www.dsm.com.

Chemelot
Chemelot is a major player in Western Europe in terms of investments in activities in the fields of chemicals and high-performance materials. Chemelot comprises an Industrial Park (with establishments of DSM, SABIC and over 70 other companies) and a Research & Business Campus. Chemelot is centrally located in Northwest Europe, has an excellent infrastructure and can easily be reached by car and by public transport. The Chemelot site offers its users feedstocks, utilities, facilities and an innovative campus. As such, it facilitates accelerated business growth, both for new investments in research activities and for innovative start-ups and chemical installations. Several businesses located at the Chemelot site are top players in their fields. But Chemelot is more than the sum of its parts: it is a chemical innovation community where people and companies share knowledge and pursue innovation and accelerated business growth in creative cooperation.

Forward-looking statements
This press release contains forward-looking statements. These statements are based on current expectations, estimates and projections of DSM and information currently available to the company. The statements involve certain risks and uncertainties that are difficult to predict and therefore DSM does not guarantee that its expectations will be realized. Furthermore, DSM has no obligation to update the statements contained in this press release. The Dutch language version of the press release is leading.