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Royal DSM plans a substantial capital expenditure program, expected to involve up to USD 450 million, to increase production capacity in its Dyneema business.
Engineering studies have now commenced for the planned investment program, which is expected to involve several phases of implementation over the next 2-3 years. The expansion is expected to result in a significant increase in DSM’s US production capacity for the Life Protection market and will also include new breakthrough technology for ballistic and other applications. This will be the largest investment program since the start of large-scale production of Dyneema.
This planned capital expenditure program is another step in a series of significant investments DSM has made in its Dyneema business in recent years. In October 2007 a 25% increase in production capacity in the US Life Protection business was announced. More recently, in March 2008 DSM welcomed the start-up of its latest Dyneema fibre production line in Greenville (North Carolina). The first additional line of this new multi-stage investment program is expected to be operational in 2009. The majority of the investments are likely to be in the United States.
“This milestone investment program shows DSM’s commitment to performance materials that help provide safety and protection for people worldwide,” said Feike Sijbesma, Chairman of the DSM Managing Board. “ This program shows we are focused on market-driven growth and innovation, one of the key pillars of DSM’s strategy, Vision 2010 – Building on Strengths.”
“With this investment program we underscore our commitment to supporting our customers in the US market through continuous growth and innovation,” said Nico Gerardu, member of DSM’s Managing Board and responsible for the Performance Materials cluster.
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