DSM, a Dutch chemical company says it may sell its materials business to focus on supplying high-value nutrition and biotech products.
The materials business posted sales in 2020 of $1.9 billion—close to 20% of DSM’s total sales—from products that include specialty nylons, biomaterials, and Dyneema super-strong ultra-high molecular weight polyethylene fiber.
DSM says it doesn’t yet have a buyer for the business. In the meantime, it is carving out the business, featuring 2,857 of DSM’s 23,127 employees, into a stand-alone company.
“This is not something that is only going to take a few weeks or a couple of months, but neither do we want it to take years and years,” co-CEO Geraldine Matchett said in a conference call to analysts probing for details about a prospective sale of the business.
DSM is also splitting its nutrition business into three divisions: food and beverage, health and nutrition, and animal nutrition. Advances in digital technology and bioscience offer new opportunities across these fields, the firm says.
“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,” Matchett said.
DSM sold its petrochemical business to Sabic in 2002. In April, DSM completed the sale of its resins business to Covestro for $1.8 billion.