DSM closes citric acid plant
This article was originally published in The Tan Sheet
Executive Summary
The Netherlands-based life and material sciences firm will close its Wuxi, China citric acid manufacturing plant by the first quarter of 2009, DSM announces Aug. 15. The closure comes after a request from the local government to relocate the plant because its current location is slated for urban development, DSM says. The firm does not expect to incur a loss due to the closing of the plant since the Wuxi government compensated DSM. The company decided not to rebuild the plant, but to relocate operations to its Tienen, Belgium site. ... Invests in Provexis: DSM Venturing acquires a 29.3 percent equity stake in Provexis, a development and licensing firm for functional food ingredients, medical foods and supplements. "The investment is in line with DSM's strategy to further expand in ingredients for functional food and dietary supplements focusing on, for example, cardiovascular and digestive health, two areas also addressed by Provexis," DSM says in an Aug. 27 release. Provexis' lead product is FruitFlow, a biotactive from tomato extract that improves blood flow for cardiovascular health, DSM says. Several large food manufacturers, including Unilever, have expressed interest in the ingredient, the firm says