DSM, through its business unit DSM Acrylonitrile �and Repsol- through its affiliate Repsol Qu�mica- have signed an agreement to establish a 50/50 joint venture in which they will combine their acrylonitrile marketing, sales and trading activities for countries outside the European Union and the European Economic Area. The joint venture, by the name of COMPANEX, will be headquartered in Sittard (Netherlands) and will become operational in April 1999.

DSM Acrylonitrile operates two acrylonitrile production units in Geleen, The Netherlands, with a total capacity of 200,000 tons per annum. Repsol Qu�mica operates one acrylonitrile unit in Tarragona, Spain, with a capacity of 120,000 tons per annum. The production units of both partners are fully integrated and are recognised to be among the most efficient and competitive plants worldwide. The units are ideally located to serve the various export markets.

DSM and Repsol are establishing this joint venture in the context of an acrylonitrile industry which is in a phase of concentration and globalization. These developments call for a rationalization of efforts, cost reduction and differentiation of products and services.

Repsol is Spain�s largest industrial company. Its activities are organised into four business segments: exploration and production of crude oil, refining and marketing, chemicals and gas. In 1998 Repsol reported sales of euros 19 billion (pesetas 3,160 billion) and a net income of euros 875 million (pesetas 146 billion).