| Profile: | DSM is a chemical company, with different products in the animal feed, industrial chemicals, pharmaceutical products and complex materials. DSM serves different end markets with its products, but DSM also supplies other companies in the supply chain. The products of DSM are for example used in the automotive sector, but also in healthcare- and food industry for both human and animal. |
| Description: | Companies in the chemicals industry make raw materials, intermediate and final chemical end products, including gases, paints, plastics, fibers and resins. A distinction can be made between various bulk coarse (petro) chemicals and fine chemicals.
The bulk chemicals like ethylene and propylene, are derived from petroleum and natural gas and form the raw material for plastics and other chemical products. Production takes place in large quantities and is very capital intensive. The margins are relatively small and the market has a cyclical character.
The fine chemicals, including pigments, perfume and fragrances and raw materials for the pharmaceutical industry, are closer to the final product. The margins on these products are higher, but the production is more research-intensive. The market is in general less cyclical, but depend more on product introductions. The activities with the food, pharmaceutical and bio-related industries are indicated as life science activities.
By focusing on integrated production and market leadership in a specific area, companies in the chemicals sector can build a competitive advantage. |
