BIZCHINA / Overseas Investment |
Degussa invests in ShanghaiBy Jiang Jingjing (China Daily)Updated: 2007-04-17 09:39
Degussa AG, a leading specialty chemical products provider, will construct a 250-million-euro plant in Shanghai, its second-largest single investment in China. The factory will have annual capacity of 100,000 tons of methyl methacrylate (MMA) and methacrylate specialties and is scheduled to come onstream in two years' time. The materials will be made into products such as LCD screens, scratch-proof paints, top-quality adhesives, modern interior trims for cars and various plastics. The National Development and Reform Commission has already approved the investment. "The new MMA facility in China underscores our global growth strategy. By investing in China, we intend to serve our Asian target markets in the best possible way and thus expand our leading international position in specialty chemicals," said Klaus Engel, chairman of Degussa's board of management. Degussa sees China as a driving force behind global economic growth and intends to increase its business in the region to 820 million euros within three years, said Yu Dahai, the firm's newly appointed China president. Yu served at Degussa's headquarters in Germany for 17 years. He said the company saw annual growth of 60 percent last year in China, posting revenue of 460 million euros. "On top of quantity growth, our focus is on quality growth. We pledge to bring profitability in China to Degussa's global level in two to three years' time," Yu said. He said the company will continue to invest 100 million euros each year in China. "We're investing in technology. This strategy will help us create more revenue with fewer staff," he said. Degussa has 18 companies in China making a wide range of products.
(China Daily 04/17/2007 page14) (For more biz stories, please visit Industry Updates) |
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