Degussa to Increase Investment in China

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Last updated at: (Beijing Time) Thursday, November 22, 2001

Degussa to Increase Investment in China

Shanghai Mayor Xu Kuangdi welcomed Degussa AG of Germany to increase its investment in China, and said he believed that foreign companies will find broader markets in China, at a meeting Wednesday in Shanghai with Utz-Hellmuth Felcht, Degussa's chief executive officer.

Degussa, the world's largest maker of special chemicals, ranks 269th among world's top 500 firms, with an annual sales volume of about 20 billion US dollars.

Felcht is here to lay the foundation for the company's Asia production, research and development base of polyurethane additives, and the project, with its first-phase investment of over 2 million US dollars, is expected to have an annual production capacity of over 1,200 tons.

He said the project will be expanded to become the company's technology and service center in China and Asia as a whole.

Before this project, the company had invested a total of over 40 million US dollars in China in 11 joint ventures.

Felcht said the company is considering setting up an investment branch in China's capital city Beijing to further expand its investment in China.

He noted that the company's determination came from China's growing economy and the improvement of Chinese people's lives.

Degussa's sales volume in China at present is 200 million US dollars, with 80 percent of the products being imported.

Felcht said Degussa will produce and develop products in China in collaboration with the Chinese side instead of exporting products to China.

He said the company is expected to double its sales in China within three years.

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