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DSM’s Flirt With Red Hot Mamas Cuts Love for Plastics

Royal DSM NV’s expansion into higher-margin nutritional supplements including menopause remedies has some investors questioning the less profitable plastics, fibers and resins assets.

While demand is growing for i-cool menopause and i-flex joint supplements, sold in Walgreen Co. drugstores, earnings from caprolactam used in nylon are being squeezed by benzene prices. Asset sales are bound to follow as the Dutch company moves away from its near 100-year chemical heritage, said SNS Asset Management’s Corne van Zeijl.