Industry News

Degussa Takes Significant Decision Regarding China Site

Published on 2004-10-04. Author : SpecialChem

Degussa AG, Dusseldorf, is determinedly expanding its commitment in China: A so-called multi-user site for new production activities of several Degussa business units is to be constructed in Shanghai. A strategic cooperation agreement to this effect has been signed in Dusseldorf by the Degussa Management Board Chairman Prof. Utz-Hellmuth Felcht and Yanhua Ruan, President Shanghai Chemical Industry Park, in the presence of Yanzhao Hu, Vice Mayor of Shanghai.

Felcht: "This is an important step in expanding our China commitment. With the new multi-user site we are creating an expandable platform for establishing our business units' production facilities in the future." Sharing the use of the site infrastructure will make it easier for Degussa's individual business units to considerably strengthen their activities in the Chinese market.

The new multi-user site is located in the "Shanghai Chemical Industry Park" (SCIP) on the southern outskirts of the city. The investment will be pooled into Degussa Specialty Chemicals (Shanghai), a subsidiary of Degussa (China) Co., Ltd., the Chinese holding. The first project is a polyester facility of the Coatings & Colorants Business Unit, which is to manufacture premium quality products and solution systems for the Chinese coatings industry from the beginning of 2006.

Degussa already inaugurated a new research and development center last spring - again in Shanghai - as part of its China strategy. This is where the company develops specific products for the local market.

Asia, particularly China, has developed into the most significant growth region for chemicals. Experts estimate that by 2015 the Chinese chemicals market will have grown to become the second-largest in the world after the USA. Felcht: "The multi-user site in Shanghai is a key element of our China strategy. We are thus positioning ourselves at the right time in this growth region in line with our standing as the world's largest specialty chemicals company."

Degussa currently has 17 companies operating in China, twelve of these are manufacturing. Of these twelve, half in turn are joint venture companies. With 1,200 employees, the specialty chemicals company generated sales of around 280 million euros in China last fiscal year.

Degussa is a multinational corporation consistently aligned to high-yield specialty chemistry. In fiscal 2003, its 47,000 employees generated sales of 11.4 billion eu-ros and operating profits (EBIT) of 878 million euros, making it Germany's third-largest chemical company and the global market leader in specialty chemicals. Innovative products and system solutions enable Degussa to play a valuable and indispensable role in the success of its customers, as summed up by our claim "creating essentials"

Source: Degussa

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