HEERLEN, The Netherlands, Feb. 17, 2005 (PRIMEZONE) -- 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(r) 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(r) 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(r) is used among others for Small Arms Protective Inserts (SAPI), and armoring of vehicles like the Humvee. Dyneema(r) 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."
DSM Dyneema
DSM Dyneema is the inventor and manufacturer of Dyneema(R), the world's strongest fiber. Dyneema(r) is a superstrong polyethylene fiber that offers maximum strength combined with minimum weight. It is up to 15 times stronger than quality steel and up to 40% stronger than aramid fibers, both on weight for weight basis. Dyneema(r) floats on water and is extremely durable and resistant to moisture, UV light and chemicals. The applications are therefore more or less unlimited. Dyneema(r) is an important component in ropes, cables and nets in the fishing, shipping and offshore industries. Dyneema(r) is also used in safety gloves for the metalworking industry and in fine yarns for applications in sporting goods and the medical sector. In addition, Dyneema(r) is also used in bullet resistant armor and clothing for police and military personnel. Dyneema(r) is produced in Heerlen (The Netherlands) and in Greenville, North Carolina (U.S.A.). DSM Dyneema is also a partner in a joint venture with Toyobo, which produces Dyneema(r) in Osaka (Japan). Further information on DSM Dyneema is available at www.dyneema.com.
DSM
DSM is active worldwide in life science and nutritional products, performance materials and industrial chemicals. The company creates innovative products and services that help improve the quality of life. DSM's products are being applied in a wide range of end markets and applications such as human and animal nutrition and health, cosmetics, pharmaceuticals, automotive and transport, coatings, housing and electrics & electronics. The group has annual sales of approximately EUR 8 billion (USD 10 billion) and employs in the region of 24,000 people around the world. DSM ranks among the global leaders in many of its fields. DSM is headquartered in The Netherlands, with locations in Europe, Asia and the Americas.
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Forward-looking statements
This press release contains forward-looking statements. These statements are based on current expectations, estimates and projections of DSM management and information currently available to the company. The statements involve certain risks and uncertainties that are difficult to predict and therefore DSM does not guarantee that its expectations will be realized. Furthermore, DSM has no obligation to update the statements contained in this press release.