DSM takes big step for nutritional products in China

By Alex McNally

- Last updated on GMT

Related tags Dsm Green tea Vitamin

DSM has today announced it will restructure manufacturing at its
Nutritional Products arm in China, a move it called a "big step" in
its plan for Asian expansion.

The company said it will develop the Xinghuo site, Shanghai, as a "strategic" manufacturing base for DSM.

The move comes just two years after the company started its first R&D centre in China.

Tough competition in global vitamin and carotenoids markets is forcing the vitamin maker to investigate new, more cost-effective production methods, which can be achieved through basing sites in China.

As a result of this restructuring, the Gonglu site, also located in Shanghai, will be closed.

At the Xinghuo site, the production of vitamins, intermediates and green tea extract Teavigo will be expanded, it said.

Vitamin production by the two leading European players, DSM and BASF, has come under significant price pressure from lower cost production and ready supply from China in recent years.

A DSM spokesperson said: " The Xinghuo site will thus rapidly expand to become DSM's largest multi-product manufacturing location in China.

The R&D activities at the Gonglu site will be relocated to the new DSM China Campus, the construction of which has just started."

The Xinghuo site will also host activities of Desotech, Sizings & Binders - which form part of DSM Resins, as well as the savory ingredients plant of DSM Food Specialties.

Jos Schneiders, president of the Nutritional Products arm, said: " With this restructuring, DSM Nutritional Products is making a big step in its growth strategy in China and in the optimization of its asset base for the future, as already outlined in the 'Aspire to Win' program announced in June 2007".

As part of the Aspire to Win strategy, the firm wants to almost double the group's sales reach revenues of US$1 billion by 2010.

Weiming Jiang, president of DSM China, adds: "This is yet another milestone for DSM China.

Shortly after the groundbreaking ceremony of the DSM China Campus, we can now announce that Xinghuo will serve as a strategic manufacturing site for various DSM products, which underlines the importance that DSM attaches to China."

In January DSM announced it would construct a new HQ complex in Shanghai, know as the China Campus.

The complex would include office premises for all business units, as well as R&D activities for some areas - in particular performance materials.

The closure of the Gonglu site is fully supported by the local government, DSM said, adding that around 200 people are working at the Gonglu site and a " social plan and relocation plan have been prepared."

Related news

Related products

show more

The B2B Marketing Benchmark – Food & Nutrition

The B2B Marketing Benchmark – Food & Nutrition

Content provided by Barrett Dixon Bell (BDB) | 12-Jun-2024 | Insight Guide

Download the first-ever B2B Marketing Benchmark to provide a relevant overview of the Food & Nutrition ingredients marketing communications; delving...

Your partner in plant-based meat alternatives

Your partner in plant-based meat alternatives

Content provided by ADM | 15-May-2024 | White Paper

Harness our technical expertise and world-class portfolio of high-quality ingredients and formulations to create elevated, chef-driven, plant-based meat...

Related suppliers

Follow us


View more