DSM is to split up its DSM Fine Chemicals business group as of 1 July 2002 into two new business groups: DSM Pharmaceutical Products and DSM Fine Chemicals. DSM Pharmaceutical Products will focus on the pharmaceuticals industry, while DSM Fine Chemicals will focus on specialty chemicals for market segments such as agrochemicals and food ingredients.

"DSM Fine Chemicals has grown enormously over the past few years. This split will enable us to focus our fine chemicals activities more specifically on the individual market segments in the life sciences industry. And this in turn means we will be able to provide still better service and respond more effectively to our customers' needs," says Feike Sijbesma, member of DSM's Managing Board of Directors. The two businesses will continue to collaborate closely in the fields of technology and manufacturing.

The business units forming part of the present DSM Fine Chemicals business group will be split up as follows:

DSM Pharmaceutical Products: DSM Pharmaceuticals and Custom Manufacturing North America (which together formerly formed DSM Catalytica Pharmaceuticals), Custom Manufacturing Europe and DSM Biologics. Based on the 2001 figures, DSM Pharmaceutical Products accounts for about 55% of the overall sales reported for the pre-split business group.

DSM Fine Chemicals: Holland Sweetener Company, DSM Special Products, General Intermediates/Agro and DSM Minera. Based on the 2001 figures, this new business group accounts for about 45% of overall pre-split sales.

The new business groups will be managed by Jo Scholz and Henk Numan, who currently run DSM Fine Chemicals jointly: Jo Scholz will be president of the new DSM Fine Chemicals business group, while Henk Numan will be president of DSM Pharmaceutical Products.