Diemen, The Netherlands, 30 June 2005 – CSM subsidiary, PURAC Nederland is planning to restructure part of its operations. The intended restructuring particularly affects the production and support services of PURAC biochem (Gorinchem) and PURAC glucochem (Ter Apelkanaal). CSM anticipates the loss of approximately 65 jobs out of a current 380. Compulsory dismissals are not excluded.
CSM is aiming to improve its profitability through Restructuring, Divestment and Growth. The restructuring at PURAC Nederland will improve efficiency and is in line with earlier announcements on CSM’s intentions to strengthen its strategic core activities in bakery supplies and food ingredients.
The unions and the works councils have been informed. A social plan will be drawn up. PURAC aims to complete the restructuring in 2006.
To cover the expected restructuring costs CSM will make a provision charged to the result for 2005.
Background information
CSM Biochemicals, which operates in the market under the name of PURAC, has an annual turnover of aroundEUR 270 million. PURAC is the global market leader in lactic acid, lactic acid derivatives, and gluconates. Theseare produced at four sites in the Netherlands, Spain, Brazil, and the United States. Lactic acid, lactic acidderivatives and gluconates have many different uses.