DSM signs NCPC deal

Heerlen/Netherlands – DSM has signed contracts with North China Pharmaceutical Group Corporation Ltd. (NCPC GroupCo) to establish joint ventures in nutrition and anti-infectives in China, and to take a minority share of around ten percent in NCPC Group Co. The deal was first announced at the end of 2004, and the new projects are expected to begin later this year. The nutrition joint venture, in which DSM will hold a 30 percent share, will manufacture vitamin C. In each the two anti-infectives JVs, which cover active pharmaceutical ingredients and intermediates, respectively, DSM’s share will be 51 percent. DSM’s total cash investment will be approximately USD 110 million. DSM will also contribute technology and management skills, while NCPC will provide existing factories producing vitamin C and beta lactam antibiotics, and handle marketing and sales for antibiotics in the fast-growing Chinese market. According to Jan Zuidam, Deputy Chairman of DSM’s Managing Board, DSM has a sales target of USD 1.5 billion in China in 2010. NCPC is one of China’s largest manufacturers of vitamins and antibiotics. The company was formed in 1953 in Hebei province. In 2007, NCPC achieved sales of RMB 6.42 billion.