Royal DSM N.V., headquartered in Heerlen, The Netherlands, North China Pharmaceutical Group Corporation Ltd. (NCPC GroupCo) of Shijiazhuang, Hebei Province, People's Republic of China, NCPC ListCo, the listed affiliate of NCPC and the state-owned Assets Supervision and Administration Commission of the State Council (SASAC) of Hebei Province announced a further detailing agreement confirming the terms of further cooperation between NCPC and DSM via investments by DSM in NCPC GroupCo as well as in NCPC ListCo and the establishment of two joint ventures in the areas of nutritional products (especially vitamin C and B12) and anti-infective products (especially beta lactam antibiotics).
This agreement is the follow-up to the announcements made at the end of 2004. As part of the overall strategic cooperation, DSM will make a strategic investment in NCPC by obtaining a minority share in NCPC GroupCo. Under the terms of the agreement, DSM also intends to acquire a minority stake in NCPC ListCo, an affiliate of NCPC, listed on the Shanghai stock exchange. In addition, DSM will obtain a 49% controlling interest in the two joint ventures for nutritional products and anti-infectives. These joint ventures will be based in Shijiazhuang, Hebei Province. Sales are expected to start at approximately $275 million/year.