DSM announced today that in view of continued increasing customer demand it will invest over USD 50 million to build a new fiber line in Greenville, North Carolina (U.S.), and boost production in Heerlen (The Netherlands) by 10%. The new Greenville line will increase U.S. fiber production capacity by more than 50%. This is the fifth expansion in Dyneema® fiber capacity since 2001 and the third in Greenville since 2003. By adding the extra line in the U.S. DSM Dyneema will become the largest manufacturer of HPPE fiber on U.S. soil. DSM expects to complete the new line in the third quarter of 2006. With this expansion, the total global Dyneema® capacity will rise to 2.5 times by 2006, compared to installed capacity in 2000. In the same time span UD capacities increase fivefold.

"Global demand for our high performance material has shown a very strong and steady growth," says Peter Elverding, Chairman of DSM's Managing Board. "And these investments will secure our position as the global market leader for the strongest man-made fiber."

DSM Dyneema opened its first U.S. fiber line in Greenville, N.C., in May 2004. The company announced the addition of a second line last January that will be operational in early 2006. Although the site is intended to serve clients in all market segments globally, due to the ongoing increasing demand for personal security and protection against terrorism it is currently mainly dedicated to producing life protection materials. Dyneema® is used among others for Small Arms Protective Inserts (SAPI), and armoring of vehicles like the Humvee. Dyneema® is also successfully applied in heavy marine mooring lines, cut resistant garments, orthopedic sutures, and fishing tackle, markets in which DSM Dyneema operates on a global scale.

"This investment will enable us to meet the increasing demands of our worldwide customers," Christophe Dardel, director and general manager of DSM Dyneema adds, "As market leader we will keep our focus on innovation by developing new products and applications enhancing the protection, performance and security that our customers have come to expect ."