DSM looks to sell Materials businesses

9:24 AM, 17th September 2021
Royal DSM head office in The Netherlands. (File Photo)

HEERLEN, NETHERLANDS: Royal DSM announced it has started a review of strategic options for its Materials businesses, including a possible change of ownership. The company is simplifying its operating structure and reorganizing its Health, Nutrition & Bioscience activities into three business groups, supporting DSM’s growth plans.

DSM will begin reporting according to this new structure as from 1 January 2022.

With a growing global population, the world is facing multiple systemic and interconnected food system challenges that impact the health and wellbeing of people, animals, and the planet. Advancements in digital technology and bioscience offer realistic scalable solutions to tackle these challenges, creating new markets and innovation opportunities. DSM, with its strong combination of scientific competences and growing portfolio of nutrition and health solutions, is ideally positioned to capture these opportunities.

“Our planet is rapidly approaching critical and irreversible environmental tipping points, as warned in the recent IPCC report. Climate change is already creating huge challenges for food systems worldwide, while at the same time food production remains one of the largest contributors of greenhouse gases. As a global leader in the science behind better health and nutrition, we have the opportunity, capability, and therefore responsibility to apply our resources and expertise where they can have the greatest impact. By focusing exclusively on our health, nutrition and bioscience activities we will be able to operate with greater agility and impact, and meet the growing need for better and more sustainable nutrition,” said Geraldine Matchett and Dimitri de Vreeze, Co-CEOs, DSM.

DSM’s new Business Groups will be:
A Food & Beverage Business Group that combines the food, beverage and pet food activities of the current DSM Food Specialties and DSM Nutritional Products divisions. This Business Group, representing more than €1bn in existing sales, will be uniquely able to meet the needs of customers and consumers by developing sustainable taste, texture, and health solutions.
A Health, Nutrition & Care Business Group with about €2.5bn of sales, aiming to keep the world’s growing population healthy through nutrition and care. As the leading player, and in close collaboration with its customers, this Business Group provides unique, sustainable, science-based and innovative solutions for consumers in early-life nutrition, dietary supplements, pharma, medical nutrition, personal care, fragrances, biomedical materials, and nutrition improvement for the most vulnerable communities.
An Animal Nutrition & Health Business Group with more than €3bn in existing sales that will focus on specialty solutions for a radical, yet achievable, transformation in the sustainability of animal protein production.

DSM has two excellent Materials businesses that, within the above context, will likely not be able to maximize their full potential to drive the important industrial shift to a bio-based and circular economy. Going forward the Materials Business Group will therefore be managed largely on a stand-alone basis and the global support functions will be re-aligned accordingly.
DSM’s new leadership structure will reflect its strategic vision and the organizational structure of a fully focused Health, Nutrition & Bioscience company.

The Executive Committee, which operates under the Managing Board and is responsible for the day-to-day management of the company, will reflect the new company structure. Next to Co-CEOs Geraldine Matchett and Dimitri de Vreeze, the members will be Helen Mets (executive vice president Materials; and executive vice president strategy & digital), Patricia Malarkey (chief science officer), Cristina Monteiro (executive vice president people & organization), Patrick Niels (executive vice president food & beverage), Philip Eykerman (executive vice president health, nutrition & care; and executive vice president M&A), Ivo Lansbergen (executive vice president animal health & nutrition), Luca Rosetto (executive vice president operations) and Andre Bos (executive vice president global products & strategic alliances).

The company recently announced an acceleration in its greenhouse gas emissions reduction target. DSM now aims to reduce emissions from its own operations by 50 percent by 2030, a significant step-up from the original target of 30 percent and based on strong progress during recent years.

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