DSM continue to expand in emerging economies

By Kirsty Barnes

- Last updated on GMT

Related tags: Penicillin, Dsm

DSM is expanding its anti-infectives production facilities in
India, as part of a global restructuring program to improve
profitability and retain DSM's position in the penicillin market.

The expansion, which will take place in 2006, will double the production capacity of amoxicillin and the penicillin-related intermediate 6-APA.

In addition to higher capacity >DSM​ will introduce its environmentally-friendly enzymatic technology for the production of active ingredients, which will provide higher purity and improved processing capabilities of the enzymatically produced amoxicillin.

"This will lead to products with a unique, improved quality and will bring substantial value to the customers of our businesses in the Asia region,"​ N. Ramanan, president of the business unit DSM anti-infectives Asia, Middle East and Africa.

The investment at Toansa is in line with DSM's new strategy to actively expand its presence in emerging economies, in order to optimally benefit from the fast growing demand in these countries.

"It is DSM's ambition to capture the growth of the anti-infectives market on the Asian and African continents,"​ said Ramanan.

As part of their new expansion strategy, DSM also recently cemented its links with China in a new agreement with large Chinese antibiotic maker North China Pharmaceutical Group Corporation (NCPC).

The move fits with the company's target of doubling sales in China to $1 billion by 2010.

Under the $164 million (€135.6 million) deal, DSM will gain a 49 per cent controlling interest in two joint ventures with NCPC, including one for the production of antibiotics (especially beta lactam antibiotics).

It will also obtain a minority share in NCPC Group, one of China's largest antibiotics and vitamins makers and another in NCPC ListCo, an affiliate of NCPC, listed on the Shanghai stock exchange.

Based in The Netherlands, DSM is active worldwide in nutritional and pharma ingredients, performance materials and industrial chemicals. The group has annual sales of approximately €8 billion and employs around 23,000 people worldwide.

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