DSM Engineering Plastics to sell Yparex® Business to Resin B.V.

DSM Engineering Plastics announces it has reached an agreement for the sale of its Yparex® adhesives business to RESIN (Products & Technology) B.V., a Netherlands-based compounding company. The sale is expected to close in Q1 2011, subject to regulatory and other customary approvals and notifications.

The Yparex® business produces adhesive tie-layer resins that are extrudable maleic anhydride-(MaH)-modified and functionalized polyolefin compounds. These are used in numerous industrial applications such as sanitary and heating pipes, floor and wall heating (or cooling), copper and steel pipe coating, film applications, cables and cladding panels.

DSM Engineering Plastics believes that the Yparex® product line has a better fit and more growth opportunity with the new owner. The Yparex® business will be positioned as an independent company, headquartered on Chemelot Campus in Geleen, NL and its current four employees will transfer to the new owner. RESIN will sign a compounding agreement with DSM Engineering Plastics to retain production in Genk, B for the duration of a transition period and service agreements with DSM Ahead and DSM Solutions for ongoing R&D support.

The impact of the transaction on DSM's results is not expected to be material. Financial details will not be disclosed.