New DSM factories in Limburg

New DSM factories in Limburg

The NOS tackled this subject in its 8 o'clock and 10 o'clock news on both television and radio, and they interviewed Alphons Geerlings of De Merkplaats. (in Dutch)

DSM is putting 100 million euros into building two new factories on its Chemelot industrial site in Geleen. It is no longer very common for a large Dutch company to decide to build new factories here rather than in low-wage economies such as China.

The choice to invest in Geleen is based on the presence of the right infrastructure. And suitably qualified staff are available immediately as well.

“On top of that, in China you are running the risk that the Chinese will copy the technology for making the products and start up for themselves," says DSM manager Jos Goessens, who knows this from experience. DSM has been putting a lot of effort into China and expects its turnover there to double to 1 billion euros by 2010.

Super-strong
Lots of companies complain about the uncertainties over intellectual property rights in China. Alphons Geerlings is a lawyer who advises Chinese judges about Western patent law. He says that China does have legislation and regulation, but there is insufficient checking that these are observed. This therefore makes it relatively easy for the Chinese to make off with other people’s valuable inventions.

Alphons Geerlings talking to NOS journalist Paul Laseur.
(radio interview, 8 September 2006)

One of the high-value products that DSM is focusing on is a plastic called Dyneema. This is incredibly strong – fifteen times stronger than steel – and it is used in items such as bullet-proof vests and helmets. Not only that, but this plastic fibre is also used for heavy duty mooring ropes for ships and all sorts of sporting applications.

The factories are due to be operational in 2008. Over recent years, DSM had mostly been cutting back in Geleen. Many people in Limburg feared further redundancies. Frans Pistorius, general manager of DSM Netherlands, states however that the investments just announced show how committed DSM is to its home region.

“The investments mean a new stimulus for the site and for economic growth in the region," says Pistorius.

Semi-finished products
The new factories will not be entirely independent of China, though. They will be manufacturing semi-finished products that are then sent to production locations in China, Japan, the United States and Belgium, where the finished products for all sorts of applications will be produced.