DSM-Tosoh-Joint-Venture Holland Sweetener Company to exit from aspartame business
Holland Sweetener Company VoF (HSC) has announced its decision to withdraw from the aspartame business. HSC is a 50/50 joint venture between Royal DSM N.V. and Tosoh Corporation (Japan). The company will terminate its activities at the end of 2006 and as a consequence will discontinue the production of aspartame in the fourth quarter of 2006.
The global aspartame markets are facing structural oversupply, which has caused worldwide strong price erosion over the last 5 years. This has resulted in a persistently unprofitable business position for HSC. No significant improvements are expected in the near or foreseeable future.
The termination of HSC's business operations will affect around 100 jobs on the site in Geleen (the Netherlands). DSM expects to be able to re-assign the majority of these people to other positions. The social plan of DSM Limburg is applicable.
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