CSM announces that its subsidiary Purac will start with the construction of a Lactide plant in Thailand to produce components for bioplastics. This investment is driven by CSM's commitment to play a leading role in the development of the market for lactic acid based bioplastics (PLA). This market is highly attractive as PLA contributes, with commercially viable products, to a significantly lower carbon dioxide (CO2) footprint than the traditional oil based plastics. The investment decision is supported by the commitment of our three commercial partners and an increasing number of partners who have signed development agreements, as well as by governmental and consumer drive for sustainable, green products. The investment for this new plant will be EUR 45 million. The new plant will be ready for start up in the second half of 2011 to meet our current level of demand and to accelerate market development.

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