Koninklijke DSM N.V. (Royal DSM, commonly known as DSM, which is the acronym for Dutch State Mines),[2] was a Dutch
multinational corporation active in the fields of health, nutrition and materials. Headquartered in
Heerlen, at the end of 2017 DSM employed 21,054 people in approximately 50 countries and posted net
sales of €8.632 billion in 2018[1] and €9.204 billion in 2021.[3] In May 2023 it merged with the Swiss company
Firmenich to form a new entity named
dsm-firmenich.[4]
History
DSM was formed by the Dutch state in 1902 to
mine coal reserves in southern
Limburg and although the company had diversified into
commodity chemicals and
petrochemicals by 1973, when the last mine closed, DSM retains a link to its origins by continuing to use the initials, originally an abbreviation for Dutch State Mines, to this day.[5]
During
World War II researchers worked on
penicillin. The code name Bacinol was used to keep the research secret from the
Germans.[6] The research was done at the company Nederlandsche Gist- en Spiritusfabriek, Dutch Yeast and Spirits Factory, later becoming DSM Sinochem Pharmaceuticals, in
Delft.
In 1989, the government floated 70% of its shares in the company on the Amsterdam Stock Exchange (now Euronext Amsterdam) with the remaining 30% floated in 1996, thereby completing DSM's privatization. The 21st century has seen DSM follow successive five-year strategic periods of portfolio transformation and internationalization involving acquisitions, divestments and partnerships.[7][8] In 2001, 48% of DSM's workforce was based in the Netherlands; in 2017, this was 18%.[1]
In 2022, DSM and Swiss privately owned group
Firmenich announced their intention to form a "merger of equals" to form a new group named "dsm-firmenich".[4]
Acquisitions
1998: Gist-brocades (food ingredients, pharmaceuticals, yeast- and enzyme-based production process technology).[9]
2021: Resins & Functional Materials business to Covestro AG.[32]
2022: Protective Materials business to Avient Corporation[33]
2022: Engineering Materials business to Advent International and LANXESS[34]
Partnerships
DSM has stated that these partnerships have been created with a view to the company's ultimate exit from the businesses concerned.[35]
2009: DSM and
NCPC sign contracts to establish nutrition and
anti-infectives joint ventures in China[36]
2011: DSM Sinochem Pharmaceuticals, joint venture (DSM 50%) with the
Sinochem Group. DSM Sinochem Pharmaceuticals is a manufacturer of generic anti-infective molecules.
2015: ChemicaInvest, joint venture (DSM 35%) with
CVC Capital Partners. ChemicaInvest consists of three business units; Aliancys (composite resins), AnQore (
acrylonitrile) and Fibrant (
caprolactam).
DSM has applied
IFRS 11 to its associates and joint ventures since 2013.
Organization
DSM's five business groups are clustered according to product and market combinations, with the business group directors reporting directly to the Managing Board. Since 2015, DSM's activities have been grouped into three clusters: Nutrition, Materials and Innovation Center.
Nutrition
The Nutrition cluster is made up of DSM Nutritional Products and DSM Food Specialties. DSM Nutritional Products produces essential nutrients such as synthetic
vitamins,
carotenoids,
human milk oligosaccharides, nutritional
lipids and other ingredients for the feed, food, pharmaceutical and
personal care industries. DSM Food Specialties manufactures food
enzymes,
cultures,
yeast extracts,
savory flavors,
hydrocolloids and other specialty ingredients for the
dairy,
baking,
beverage and savory segments. DSM also manufacturers a novel cattle feed additive (Bovaer) to reduce
methane production from dairy production.[37] In 2021, DSM was ranked 6th on FoodTalks' list of Top 30 Global Probiotic Food Ingredient Companies.[38]
Materials
The Materials cluster is made up of DSM Engineering Materials, DSM Protective Materials and DSM Resins & Functional Materials. DSM Engineering Materials’
specialty plastics are used in components for the electrical and
electronics,
automotive, flexible food
packaging and
consumer goods industries. DSM Protective Materials is the inventor, manufacturer and marketer of
Dyneema. DSM Resins & Functional Materials manufacture
resins solutions for
paints,
inks,
stereolithography, and industrial and
optical fiber coatings.
Innovation Center
In addition to the role of supporting innovation in the businesses and DSM's venturing activities, the Innovation Center is responsible for the company's ‘Emerging Business Areas’; DSM Biomedical (
biomaterials and regenerative medical devices), DSM Bio-based Products & Services (
biomass-conversion technology) and DSM Advanced Solar (
AR-coatings and
Photovoltaic-films for
solar modules).
Current strategy
Financial targets
In November 2015, DSM announced that up to 2018 it was targeting a high single-digit annual percentage increase in
EBITDA and a high double-digit annual basis point increase in
Return on capital employed (ROCE). It will focus on organic sales growth, reducing costs and strict capital allocation and does not expect to engage in large acquisitions in the near future.[39]
Environmental targets
Within its corporate strategy the company also defines long-term sustainability aspirations, which include targets to improve the eco-efficiency of its operations. In November 2015, DSM set the following environmental reduction targets:
Reduction of emissions to air per unit of product (
VOC,
NOX,
SO2)
40% in 2020 (reference 2015)
Waste
80–90% recycled by 2020
Water
Water risk assessments completed on 90% of selected sites by 2020
Since 2010,[40] the Short[1]- and
Long-Term incentive[1] elements of the remuneration of DSM's Managing Board[41] and executive bonuses[42] relate to the company's financial and environmental performance in equal measure. Since 2004,[43] DSM has been either the Materials
industry group leader, (7 years) or among the leaders in the annual
Dow Jones Sustainability Index.
Shares
DSM is listed on
Euronext Amsterdam and is a constituent of the
AEX index. Options on DSM shares are traded on the European Option Exchange in Amsterdam. In the US, a sponsored unlisted
American Depositary Receipts (ADR) programme is provided by Deutsche Bank Trust Co. Americas. These ADR's are listed on the
OTCQX International Premier Marketplace.
^
abcdeJeannet, Jean-Pierre, Schreuder, Hein (2015). From Coal to Biotech: The Transformation of DSM with Business School Support. Berlin Heidelberg: Springer-Verlag. pp. 198, 207, 215, 233.
ISBN978-3-662-46299-7.{{
cite book}}: CS1 maint: multiple names: authors list (
link)
^Cassiman, Bruno; Colombo, Massimo G (2006). Mergers & Acquisitions: The Innovation Impact. Cheltenham: Edward Elgar Publishing. p. 145.
ISBN978-18-472-0158-4.
^Zhao, Viola (20 April 2021).
"2021年全球食用益生菌原料企业30强". www.foodtalks.cn (in Simplified Chinese).
Archived from the original on 17 January 2022. Retrieved 17 January 2022.