DSM to close IJmuiden plant

– DSM Agro is to close its plant at IJmuiden in 2010, following government pressure to stop the rail transport of ammonia to the site. The Dutch government says it wants to make the Netherlands safer by restricting the transport and storage of hazardous substances, notably ammonia, chlorine and LPG. Two government departments—the Ministry of Housing, Spatial Planning and the Environment, and the Ministry of Transport, Public Works and Water Management—want to eliminate the risks posed by ammonia shipments from DMS’s Geleen site to IJmuiden. When that happens, according to DSM, the IJmuiden site will no longer serve any useful purpose. The two ministries and DSM have reached an agreement in principle, under which DSM will receive compensation. The closure of the IJmuiden site will lead to the loss of about 120 jobs. Based on an existing employment pact and by offering employees new jobs elsewhere in DSM and to steelmaker Corus, DSM expects to be able to avoid forced redundancies. One of DSM’s nitric acid plants, which is currently located at IJmuiden, will be moved to Geleen. To compensate for the loss of capacity at IJmuiden, DSM is exploring the possibility of expanding fertilizer production in Geleen. The closure will not affect the intended sale of DSM’s Agro business, which was confirmed in September 2007 when DSM announced the acceleration of its corporate strategy Vision 2010. The new agreement provides closure for an issue with a long history, DSM says, and is good news for the future owner of the business. The “new” DSM will concentrate on innovative products and services in life sciences and materials sciences, include human and animal nutrition and health, personal care, pharmaceuticals, automotive, coatings and paint, electrical and electronics, life protection and housing. DSM has annual sales of almost € 8.8 billion.