Fire at DSM Facility to Impact Martek Financials

COLUMBIA, Md.--Martek Biosciences (www.martekbio.com) expects a loss in revenue of up to $10 million in its third quarter, after a fire in a DSM production facility in Belvidere, N.J., shut down production of arachidonic acid (ARA). The fire occurred in an outside dust collection unit, and DSM's initial estimates are that the line will be down for several weeks. In a press statement, Martek said it would release final revenue expectations after the extent of the equipment damage is assessed.

According to an article on The Express-Times, the dust collector unit involved has approximately 70 to 80 dust bags hanging inside it. Michael Hosterman, Good Will Fire Co. assistant foreman, told the paper that the cause of the fire is still under investigation.

Martek and DSM announced in late April an extension of their existing business relationship in the ARA field. DSM planned to expand its production capacity to meet increasing market demand, and has been Martek's ARA supplier since 1997.