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Cosun to sell C5 Yeast Company

28 June 2011
Royal Cosun, specialised in processing agricultural crops, announces the divestment of its C5 Yeast Company to Royal DSM. C5 Yeast Company was part of former Royal Nedalco, Cosun’s alcohol business group which was divested earlier this year.
C5 Yeast Company has built a distinctive position in second generation bio-ethanol. Based on its innovative know how, yeast strains were developed capable of efficiently fermenting C5 sugars such as xylose and arabinose.
Royal Cosun’s CEO Robert Smith says: “The highly qualified knowledge workers of C5 Yeast Company did an outstanding job. As a result the company has established an excellent position in the know how and commercialisation of C5 sugars fermenting yeasts and is expected to complement DSM’s position in this business substantially. Consequently, we see DSM as a natural and long term home for C5 Yeast Company.”
The divestment means more focus of Royal Cosun on its core activities centred around the processing of agricultural raw materials. Next to its traditional food business in sugar (Suiker Unie), potato specialties (Aviko), inulin (Sensus) and fruit/vegetable products (SVZ), Cosun has recently strengthened its activities in the area of bio-based products for non-food applications. Focus is on derivatives of inulin (CMI) for water treatment and detergents and on chemical building blocks such as furanics derived from agricultural raw materials.
Royal Cosun expects to be able to finalise the transaction in July, depending on the customary approvals.