Degussa expands R&D Center in Shanghai – Asian/Pacific market to benefit
Industry news
Degussa expands R&D Center in Shanghai – Asian/Pacific market to benefit
“From its Research & Development (R&D) center in Shanghai, Degussa has enlarged the scope of its research and development work in China,”said Dr Alfred Oberholz, Deputy Chairman of the Management Board of Degussa GmbH, in the opening ceremony for the expanded R&D center in Shanghai.“The expansion underscores the strengthened R&D activities and the continued commitment of Degussa in China.”
Degussa (China) Co. Ltd announced that it had expanded its R&D center in Shanghai, at a total investment of over e22 million. As one of the largest R&D centers ever established by a multinational company in Shanghai, the new R&D center has a total of 25,000m2 of space, housing state-of- the-art laboratories for research and development, application technology, and technical service. The investment included the construction of a pilot facility for polymer engineering in a four-story building with a footprint of 1,250m2.
The former R&D center was inaugurated in April 2004. Degussa invested e12 million in the Shanghai R&D center. The expansion provides, among other things, a regional hub for sales, marketing, technical services, R&D, and the service platform for customers in China and other countries in the Asia/Pacific region.
“With this inauguration of the new R&D Center Shanghai, we're delivering on our promise to further enhance our presence in China in research and development. Our enlarged R&D center will help us to strengthen the interface between Degussa's business units and customers, universities, and research institutes in China and provide customers with tailor-made solutions and our high-quality products. Our center will also be the principle site for our marketing and sales activities and the administrative functions of the Degussa China region,” said Dr Dahai Yu, Regional President of Degussa China. “The expansion of our R&D center marks yet another milestone for our Make China Happen initiative, which aims to boost our sales in China to e800 million by 2009.”
About 2,300 of Degussa's employees work in R&D at over 35 research locations all over the world, including the Nanotronics Science-to-Business Center and the new Bio Science-to- Business Center. Degussa also cooperates with more than 200 universities and research institutes in an effort to transfer scientific knowledge into business swiftly. Some 20 percent of group sales are based on products and technologies that are less than five years old.
Over the next few years, Degussa intends to invest about e100 million annually in China, which will further strengthen Degussa's commitment to this important growth region.
Degussa has been producing specialty chemical products in China since the early 1990s, with wide-ranging trading relations already in place prior to this. The Degussa Group meanwhile owns more than 20 companies in the country, with production sites in Anqiu, Changchun, Dalian, Jining, Liaoyang, Nanning,Nanping, Qingdao, Rizhao, Shanghai, Taiwan and Yingkou. In fiscal year 2006,4,000 employees generated sales of e460 million in China, which is an increase of 60 percent from e288 million in 2005.
Degussa – a wholly owned subsidiary of the RAG Group – is the global market leader in specialty chemicals. Our business is creating essentials– innovative products and system solutions that make indispensable contributions to our customers' success. In fiscal 2006 around 36,000 employees worldwide generated sales of e10.9 billion and operating profits (EBIT) of more than e870 million.
