DSM Specialty Intermediates (DSI) is to cease all production at the Chemelot industrial site in Sittard-Geleen, Netherlands, with effect from 1 July and discontinue all operations by the end of the year. As a result, 37 employees will lose their jobs, though the company is consulting with the Works Council to look for alternatives.

DSI makes intermediates for the automotive, food and pharmaceuticals industries and had been under heavy price and margin pressure for some years because of increasing competition, especially from China and India. As a result, many of its plants had already closed in 2007 and others integrated with other DSM sites.

However, DSM said, “it proved impossible to make DSI structurally profitable, even after these measures”, leaving it no option but to close. Supply contracts will be honoured via what is produced in the five remaining months at the site.