BIZCHINA / Overseas Investment
Degussa invests in Shanghai
By 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.
(For more biz stories, please visit Industry Updates)
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