DSM considering sale of materials business including nylon

DSM is reviewing its materials business, which includes nylon and ultra-high molecular weight polyethylene (UHMWPE), for a possible sale
.
Previously, DSM decided to accelerate the transition to one Transforming companies focused on health, nutrition and biosciences
.

The Materials business posted sales of EUR 1.
5 billion in 2020 and adjusted operating profit from continuing operations of EUR 168 million
.
DSM's Engineered Materials segment focuses on the automotive and electronics markets, with a focus on nylon (including nylon 6 and 6,6 and high heat-resistant nylon 4,6), thermoplastic elastomers, polyphenylene sulfide and polyethylene terephthalate A leader in polyester and polybutylene terephthalate specialty polyesters
.
The Protective Materials business is a leading producer of ultra-high molecular weight polyethylene
.

In March, DSM sold its resins and functional materials business to Covestro for 1.
6 billion euros ($1.
9 billion), a deal that included 1.
4 billion euros in cash
.

In the restructuring, the materials business will be largely managed independently, and global support functions will be adjusted accordingly, DSM said
.
This will help shape DSM in the planned transformation, as well as the divestiture of the Materials business
.
DSM co-CEO Geraldine Matchett said on a recent conference call with analysts that finding a new owner for the business was the preferred outcome
.
Geraldine Matchett said the timing of the sale was unclear, but DSM would work to complete it as quickly as possible
.

DSM said the company's restructuring will create three market-focused business groups
.
The Food and Beverage segment will combine the food, beverage and pet food businesses of DSM's current Food Specialties and Nutritional Products divisions
.
Full-year sales from the new unit are expected to be 1.
2 billion euros ($1.
4 billion), based on the performance of the existing units in the first half of 2021, according to the company
.

DSM said the Health, Nutrition and Care business group will provide solutions for early life nutrition, dietary supplements, pharmaceuticals, medical nutrition, personal care, fragrances, biomedical materials and nutrition improvement in the most vulnerable communities
.
It estimated the division's full-year sales at 2.
3 billion euros
.
The Animal Nutrition & Health segment will focus on sustainable specialist solutions to transform the production of animal protein, with annual sales estimated at around 3.
3 billion euros
.

DSM also separately announced a series of new commitments in line with its ambition to make a "meaningful impact" in improving the world's food systems
.
DSM’s new food systems strategic commitments to 2030 include closing micronutrient gaps for 800 million vulnerable people, supporting the immunity of 500 million people, reducing emissions from farm livestock by more than 10%, and nourishing 150 million people Abundant, sustainable plant-based protein foods, and working with partners to support the livelihoods of half a million smallholder farmers along the value chain
.
It added that these are the company's commitments to make a meaningful contribution to human health, planetary health and healthy living, and cover all three new business groups
.
DSM noted that it aims to achieve these goals "by investing in its (bio)science-based innovation, extensive partnerships and advocacy activities"
.

DSM announced in August that it aimed to reduce greenhouse gas emissions from its operations by 50 percent by 2030 from 2016 levels, accelerating the initial target of a 30 percent reduction by the end of the decade
.