SOURCE: DSM N.V.

July 07, 2008 02:15 ET

DSM reports production interruption at DSM Agro

HEERLEN, NETHERLANDS--(Marketwire - July 7, 2008) -


Royal DSM N.V., the global Life Sciences and Materials Sciences company headquartered in the Netherlands, today reports that an interruption in production that occurred at DSM Agro last month will take longer to end than originally anticipated. In view of the current positive business climate the outlook will not be lowered due to this event.

At the beginning of June technical problems arose at one of the DSM Agro ammonia plants in the Netherlands. The production interruption was originally estimated to last only a few weeks. Unfortunately it now turns out that the repair might take into October. DSM continues working on possible alternative solutions.

This incident was unexpected, but once repair has taken place, the plant will function again at full capacity. While the damage to assets is as such limited, the business-loss for DSM Agro, for which ammonia is the primary raw material, could run into several tens of millions.

Thanks to insurances, the total negative financial impact for DSM of this one-off incident is expected to be between EUR 25 to 30 million, most of which in Q3.

Considering the current positive business climate for both DSM Agro as well as for DSM as a whole, this interruption in production is no reason for DSM to lower the outlook it has given for the full year. Further details will be disclosed at the Q2 results presentation on July 29.


DSM - the Life Sciences and Materials Sciences Company

Royal DSM N.V. creates innovative products and services in Life Sciences and Materials Sciences that contribute to the quality of life. DSM's products and services are used globally in a wide range of markets and applications, supporting a healthier, more sustainable and more enjoyable way of life. End markets include human and animal nutrition and health, personal care, pharmaceuticals, automotive, coatings and paint, electrics and electronics, life protection and housing. DSM has annual sales of almost EUR 8.8 billion and employs some 23,000 people worldwide. The company is headquartered in the Netherlands, with locations on five continents. DSM is listed on Euronext Amsterdam. More information about DSM can be found at www.dsm.com


For more information:

DSM Corporate Communications               DSM Investor Relations
Elvira Luykx                               Hans Vossen
tel. +31 (0) 45                            tel. +31 (0) 45 5782864
5782035                                    fax +31 (0) 45 5782595
fax +31 (0) 45                             e-mail
5740680                                    investor.relations@dsm.com
e-mail media.relations@dsm.com

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