About DSM Materials
Our Materials cluster comprises DSM Engineering Materials and DSM Protective Materials. The cluster comprises a high-quality portfolio of specialty materials for global end-markets including electrical components and electronics, automotive, food packaging, medical, personal protection, commercial marine, and apparel. Through our advanced and sustainable solutions, we are meeting demand for safer materials, greater efficiency and improved environmental performance.
Sale of DSM Resins & Functional Materials
On 30 September 2020, we announced an agreement to sell DSM Resins & Functional Materials (RFM), including DSM Niaga®, DSM Additive Manufacturing and the coatings activities of DSM Advanced Solar to Covestro AG, a specialty materials player, for an equity value of €1.6 billion. The combination of RFM and Covestro AG will create a business of enhanced scale and technological capability that will benefit existing and potential customers as well as its employees by providing a stronger platform for sustainable growth. These businesses join a new home with a leading position in their sector, a track record of investment, and values closely aligned with our own, including sustainability and care for people. We expect to close the transaction in the first half of 2021. As of the third quarter of 2020, the divested businesses were classified as ‘held for sale’, and the net result from these discontinued operations is reported separately in the consolidated financial statements in Note 3 Change in the scope of the consolidation.
Agility to Grow
As part of a wider restructuring initiative to leverage synergies and increase operating agility without compromising the potential of the business, we started as of September to execute our Agility to Grow program. This will deliver annualized recurring cost savings of €15–20 million in Materials, excluding the portion previously attributable to the Resins and Functional Materials businesses.