October 3, 2006

DSM plans to raise production capacity in China

Diversified Dutch multi-national manufacturing company DSM is planning to make China its main production base.

According to DSM global vice-president Jiang Weiming, this will be realised through acquisitions and boosting cooperation with Chinese companies by bringing them into DSM's global production network. China looks set to be the second biggest market for DSM's products by 2010, Jiang told China's First Financial Daily newspaper.

DSM's revenue hit US$10.19 billion in 2005, with sales from China contributing US$600 million. The company plans to increase its revenue from the China market to US$1 billion by 2010, and to raise its production capacity in the country by at least 3 times from current levels.

Other than the 8 joint-venture companies and 11 wholly-owned companies, DSM also owns 13 manufacturing plants in China. According to Jiang, DSM is currently focusing on building up its resin business in southern China.

Meanwhile, seeking closer cooperation with China's companies and sourcing for potential takeover targets--in the field of antibiotics, vitamins, coating materials, structural resin, engineering plastic and fibre intermediates--will be DSM's next priority.

RMB1=US$0.126