August 28, 2008
DSM N.V. announced the closure of its citric acid manufacturing plant in Wuxi (China) by Q1 2009 due to a request by the local government to relocate as its present location is needed for future urban developments.
DSM will receive a compensation amount from the Wuxi government and does not expect to incur a book loss. The company is also making plans for the hundreds of workers affected.
In explaining the closure, DSM said China's market for citric acid has been under pressure in recent years, mainly due to overcapacity and is expected to remain so for some time.
Instead, DSM would concentrate production at its plant in Belgium where competitiveness has substantially improved due to restructuring and process optimisations. Citrique Belge, DSM's Belgium citric acid site, has been producing citric acid since 1929.