JEC COMPOSITES MAGAZINE - Issue #50 - July/August 2009 - 14

COMPANIES COMPANIES DSM Composite Resins and Büfa: they finalize european joint venture agreements The intention to work together was announced in November last year, now all contracts have been signed. SM and Büfa announced the completion of two joint venture agreements, one to create the first comprehensive pan-European distribution and support network for the composites industry going by the name of ‘Euroresins’ and a second, going by the name of Büfa ‘Gelcoat Plus’, as a key developer and manufacturer of high quality and innovative gelcoats, adhesives, pigment pastes, and fire D retardant products. Both companies will operate a shared business structure, with DSM having a majority share in the distribution business of Euroresins, and Büfa taking the lead in the business for gelcoat, fire retardants and adhesives. The intention to work together was announced in November last year, now all contracts have been signed. Both companies presented themselves at the JEC Composites show in Paris, literally under one roof, providing a visually impressive indication of the level of cooperation between DSM and Büfa to be witnessed in the future. Work is underway to make the shared business structure a practical reality, which will involve aligning product ranges, and the transfer of some customers to either one of the JVs. More information: www.dsmcompositeresins.com DR MICHAEL EFFING, PRESIDENT, DSM COMPOSITE RESINS marine and building & construction sectors. Our business in Europe has been hit harder than in Asia. Despite the declining GDP rate in China, our business is growing significantly there. JCM: Have you taken any specific steps to help you get through this unusual situation? M. E.: Of course we have done the obvious. We have reduced our stocks – basically switching to a make-to-order manufacturing strategy. We are also carefully managing our cost position and spending, while focusing on getting paid by our customers. We are keeping a careful eye on the financial health of our customers. Unfortunately, we have also been forced to take some measures in our organization. Since our plants are not running at full capacity, fewer people are needed in manufacturing., We have either introduced partial unemployment or have had to let people go in certain regions or countries. So far, we have chosen not to close any facilities, nor are we reducing our efforts to develop new products and services for our markets. JEC Composites Magazine: You are arriving in a particularly difficult year. What is your prognostic on the situation and when/how we might pull out of the economic crisis? MICHAEL EFFING: Unfortunately, I do not have a crystal ball so I cannot tell you when the crisis will be over. There are no clear signs of recovery yet. Our business is down considerably and we do not expect an upturn before mid-2010. Luckily, our mother company DSM is financed conservatively and has a portfolio of units that are either unaffected (like food and pharma), or are only experiencing a minor reduction in turnover. JCM: Which sectors and geographical areas have been affected the most? M. E.: The most severe decrease in demand has been seen in the automotive, JCM: What role could innovation play in this context? How are you equipped with respect to innovation? M. E.: I believe that innovation is the key to getting through this period in the best possible manner. We have chosen to focus on the high end of the composite resin market, and we must continue our efforts to innovate in order to maintain our position. We have even hired additional specialists in R&D and new business development to do just this. JCM: Customer service is another aspect that can make a big difference. Have you stepped up your customer service? M. E.: We have intensified our customer contacts. We clearly believe in staying with our customers in these difficult times. We are keeping our people in place where it most matters. As part of our reorganization, we have implemented two distinctive channels to the market. We offer a complete range of premium composite packages and know-how to small- to medium-sized companies via Euroresins, our pan-European 14 jec composites magazine / No50 July-August 2009

http://www.dsmcompositeresins.com

JEC COMPOSITES MAGAZINE - Issue #50 - July/August 2009

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