DSM, the world-leading supplier of life science and nutritional products, performance materials and industrial chemicals, today opened its first Research & Development (R&D) Center in China. The center is located in Shanghai.

The DSM R&D Center China will be the company's main R&D base in the country and will form a vital part of DSM's global R&D network. In addition to carrying out product and applications development work, the center will support DSM's businesses in several other ways: by tracking market trends, by proactively responding to the needs of customers, and through interaction with the external know-how infrastructure, such as partners in universities, scientific research institutes and industry. DSM Nutritional Products, DSM Food Specialties and DSM NeoResins will be the first three DSM businesses to operate facilities at this R&D Center.

"DSM began its first phase of long-term growth in China through technology licensing activities in the 1960s. For the past decade DSM has made significant investments in the country the second phase of long-term growth. Today, with the opening of the DSM R&D Center China, DSM begins its third phase ," said Mr. Jan Zuidam, Deputy Chairman of DSM's Managing Board of Directors. "Establishing this R&D footprint in China gives us the opportunity to integrate better with China's science and technology community and to get embedded into the Chinese business value chain."

DSM has always maintained a strong emphasis on innovation. Throughout its century-long history of transformation and business expansion, innovation, in which R&D plays a crucial role, has been and will stay a top priority. Total R&D expenditures in 2004 amounted to EUR 286 million, around 4% of net sales. Worldwide, DSM has approximately 2,000 R&D staff organized around a range of competences at the forefront of technology. Consequently, DSM enjoys a competitive technological advantage in fields as varied as nutritional science, biotechnology and materials science. This helps DSM achieve innovations that improve people's lives.

DSM also works closely with some of the world's most innovative R&D partners, exchanging scientific and technological knowledge with some 2,000 university departments worldwide. DSM currently owns 13,000 patents, covering 2,500 individual inventions; some 250 patent filings take place every year.

In China, DSM is very active in seeking partnerships with research institutions to develop products and solutions that meet the needs of Chinese customers. The company's various R&D units already have contacts with several leading Chinese universities. DSM and Fudan University's joint lab will open later this month. The partnership will give the renowned Chinese institution the financial, technological, manufacturing and management support needed to exploit innovations to the fullest.