DSM Notches Enzyme Deal in China

HEERLEN ,The NetherlandsRoyal DSM has solidified a joint venture with Yixing QianCheng Bio-Engineering Co Ltd., a private Chinese biotech company, to create a new company called DSM (Jiangsu) Biotechnology Co. Ltd. that will focus on the enzyme market. With this venture, DSM hopes to reinforce its position in the global enzyme market, which is about 2 billion euro ($2.9 billion USD); the Chinese market for food enzymes is among the worlds largest, with growth rates far above the global average of 6 to 8 percent. Located in YiXing, Jiangsu Provence, Yixing QianCheng has been active in Chinas domestic market since 1993 with its strong portfolio of food additives.

This joint venture provides DSM with a strong enzyme operating platform in Chinese and Asian markets, Lars Asferg, director of Business Unit Enzyme Solutions at DSM Food Specialties. Food is a local business and you need to be present in your customers markets to create innovative solutions to meet the specific local preferences of our customers. The Yixing enzyme plant will expand the DSM global manufacturing networks on the Asian continent. The plant will be upgraded to meet the DSM standards for quality and traceability as laid-out in our Quality for Life-commitment.

Wu, general manager at Yixing QianCheng Bio-Engineering Co Ltd. said his company was pleased to enter into partnership with a global leader like DSM. This joint venture will help us in the Chinese food and beverage industry with solutions of guaranteed quality and consistency.

Dr. Weiming Jiang, president of DSM China said the partnership in China fully fits with DSMs strategy: driving focused growth. DSM will continue its strong focus on China to achieve market-driven organic growth enhanced by acquisitions and partnerships, he said  In the context of China 12th Five-Year plan, we expect to work with more local partners in biotechnology.

Under terms of the finalized joint venture, DSM will be the majority shareholder, with 85 percent of the shares of DSM (Jiangsu) Biotechnology Co. Ltd., and Yixing QianCheng Bio-Engineering Co Ltd will own the remaining 15 percent of the shares. Further terms of the agreement will not be disclosed.