By Jean-Pierre Jeannet, Hein Schreuder
This administration ebook files the impressive transformation of DSM, first from a coal mining corporation to a commodity chemical substances manufacturer after which within the final 20 years to the lifestyles sciences & fabrics sciences corporation it really is this day, with its powerful specialize in biotechnology. The booklet supplies an inside of view at the ‘strategic studying cycles’ that experience pushed this evolutionary transformation. It additionally discusses the corporate qualities that experience contributed to its skill to evolve, develop and prosper. well known company faculties comparable to IMD and Babson have observed the second one transformation of DSM via their govt teaching programs. The ebook files this help and attracts classes for long term collaboration among businesses and the enterprise tuition world.
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Additional resources for From Coal to Biotech: The Transformation of DSM with Business School Support
Attention should be drawn to the following: • Although the company was still a state-owned enterprise, it was largely run as a private company. Nevertheless, it needed governmental approval for major projects and decisions, which sometimes led to delays. Moreover, whether by implication or by choice, the company was very conscious of its ‘social responsibility,’ particularly with regard to employment in the province of Limburg. When the decision to close the mines was announced, an important message was that the government and the company would seek, as much as possible, ‘alternative employment’ opportunities.
Therefore, DSM also continued its expansion of petrochemicals. In conjunction with the naphtha-cracker nr 4 coming on stream in 1978, a further LDPE plant (system 16) and a third HDPE plant were built and DSM entered the production of Linear Low Density Polyethylene (LLDPE) as well (the first plant in 1980; the second in 1987). Polypropylene production was added in 1977, with a second plant in 1990. In the Gas-based cluster, a second melamine plant and a second methanol plant were both added in 1978, as well as a third ammonia plant in 1984.
14 1 DSM: From Dutch State Mines to Chemicals Company quarter of total Dutch gas distribution flowed through DSM pipelines. In 1959, Shell and Esso (through their joint venture NAM (Nederlandse Aardolie Maatschappij) found an enormous natural gas field in the northern part of The Netherlands. The Dutch government was reluctant to grant NAM a license to exploit this gas field, since it did not want the gas exploitation and public supply to be totally controlled by private enterprise. Moreover, DSM convinced the Dutch government that: (1) it had the required expertise of gas purification and transport, while (2) it also had the necessary gas distribution system of pipelines in the southern part of the Netherlands.