DSM announced today that due to increasing demand, it will add capacity for Dyneema® yarn, DSM's high-performance polyethylene (HPPE) fiber, and Dyneema® UD (UniDirectional bullet resistant sheet) in Greenville, North Carolina (U.S.). The new facilities will increase global fiber production capacity by nearly 20 percent, and UD capacity by 25 percent. Both facilities are expected to be operational beginning 2006.

Supporting High Demand for Lightweight Armor Material
DSM opened its first U.S. yarn production line in Greenville, N.C., in May 2004. Although the site is intended to serve clients in all market segments globally, it is currently dedicated to producing life protection materials, due to the ongoing increasing demand for personal security and protection against terrorism.

Colonel John Norwood, Project Manager Soldier Equipment of the U.S. Army said: "Opening the first plant in May was a major milestone in supporting U.S. Army requirements for personal body armor. The investment in the second plant further increases the supply of this critical, lightweight, ballistic material, providing our soldiers in combat the best protection available."

Suzanne D. Patrick, Deputy Under Secretary of Defense (Industrial Policy) stated: "The Department of Defense's requirements and procurements of Interceptor Body Armor have increased greatly over the last two years, straining domestic industry's ability to meet our requirements for the ballistic backing material incorporated into the small arms protective insert (SAPI). The Department is pleased that DSM is expanding its U.S. production capacity for this material. This expansion should help the Department meet current and projected demands for ballistic material for SAPI and other Defense Department applications. Additionally, the expanded production capacity will enhance competition and provide U.S. jobs."

Accommodating Current and Future Growth
"By adding this new multi-functional capacity on our highly integrated Greenville site, DSM Dyneema is responding to the continuously increasing demand for our high performance products," said Christophe Dardel, Director of DSM Dyneema. " We will continue to show our strong support to the U.S. military, but additional capacity increase will also be necessary in order to fulfill growing demand from other market segments. Therefore, we are already investigating options to further expand our global capacity, and maintain our market leadership position".