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Business / Economy

Life sciences firm DSM bullish on China growth

By LAN LAN (China Daily) Updated: 2015-10-13 09:51

Feike Sijbesma, chief executive officer and chairman of Dutch life sciences company Royal DSM, has a world map in his mind, with key locations marked with changing economic indicators.

All the so-called upcoming high-growth economies, led by China, India, Brazil, and Russia, accounted for about 45 percent of the company's total sales in 2014.

"That percent will grow in coming years to slightly above 50 percent-h(huán)owever, I do not expect it will go much higher than that," he said.

Both Russia and Brazil's economic growth was on the downside in the first half.

China's slowed to 7 percent in the first half, while India's outpaced China, expanding at 7.5 percent in the first quarter and 7 percent in the second.

"Of course we are looking at India, but I remain committed to China," said Sijbesma.

"I'm not denying growth is a little bit less, that's true, so let's face that. There's still good potential."

China is one of DSM's fast growing markets. Sales were nearly $2 billion in 2014, accounting for around a fifth of its total.

The company has a wide Chinese product portfolio, ranging from animal nutrition and human food to building materials.

As the Chinese economy has entered its "new normal" stage of slower but more sustainable growth, foreign companies operating in the market have also been affected in different ways, said industry analysts.

Jiang Weiming, president of DSM China, said the company enjoyed a 14 percent year-on-year growth in 2014 in China. He did not give numbers for this year's growth, saying "it's still keeping pace with China's GDP growth".

The company's growth here was around 7 percent in the first eight months, said Jiang-lower than more than 10 percent in previous years, but still keeping pace with GDP.

Sijbesma said he "fully supported" the direction of the Chinese government, adding "China is in transition to a maybe more high-end manufacturing and innovation country".

"The new normal also means taking care of efficiency, society and our environment.

"That's a big transition that cannot be completed within one year or two. By the way, that's still pretty good growth, higher than the United States and many other countries."

He said DSM has a long-term vision of the Chinese market, and insisted China's ongoing urbanization process will bring it more customers.

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