August 27, 2019
DSM completes vitamin E joint venture in China, stops production for upgrade to DSM standards
Royal DSM has completed the creation of a 75/25 joint venture (JV) with Nenter & Co., Inc., as first announced on January 29, 2019 (http://www.efeedlink.com/contents/01-29-2019/8f8c1ca2-ca08-439e-871a-bb04f02bb54d-a181.html).
The JV acquired all Nenter's Jingzhou vitamin E production and related assets. The JV will immediately start implementing the anticipated upgrade activities to ensure compliance with DSM's safety, health and environmental standards, and therefore will stop production. The shutdown will last as long as needed to finalise these upgrades.
The JV now owns and will operate the vitamin E production facilities in Jingzhou, Hubei and has a minority shareholding in Nenter's Shishou facility also in Hubei, where an intermediate for vitamin E is produced. The JV will produce vitamin E exclusively for DSM.
The shutdown that was already planned as from beginning of September will be extended to enable the implementation of these upgrade activities. DSM says that as soon as there is more clarity on the total duration of the shutdown, an update will be given.