DSM inks enzyme joint venture agreement in China

By Guy Montague-Jones

- Last updated on GMT

Related tags Stock market China Dsm

DSM has signed a joint venture agreement with a Chinese biotechnology company that will give the Dutch ingredients supplier its first enzyme manufacturing plant in China.

The agreement between DSM and Yixing QianCheng Bio-Engineering will result in the creation of a new company, DSM (Jiangsu) Biotechnology, based in YiXing, Jiangsu Provence.

Employing around 70 people and consisting of a manufacturing plant, lab facilities and a warehouse, the new joint venture will produce enzymes for brewing, bakery and other food products in China.

Closer to the market

“We had shipped enzymes out of the US and Europe before but now we can serve our customers in China directly,” ​Hans-Christian Ambjerg, president of DSM Food Specialties, told FoodNavigator.com.

Ambjerg said DSM had been in discussions with Yixing QianCheng Bio-Engineering about its QianCheng enzyme business for some time and had been impressed by its people and technology. The company has been established in the Chinese market since 1993 and has built up a broad portfolio of enzymes for the food market.

Ambjerg said that the decision to partner up or go it alone is taken on a case-by-case basis but in this instance setting up a joint venture was judged to be “the fastest and best way”​ to market.

Joint venture terms

Under the terms of the agreement, DSM is the majority shareholder with 85 per cent of the shares while Yixing QianCheng Bio-Engineering will hold on to the remaining 15 per cent.

DSM has been building up its food business in China in recent years to get closer to a market that is promising sustainably high future growth. In 2010 the supplier opened up an innovation centre in Shanghai that will work on the development of new products for the Chinese market.

Ambjerg said China has its own particular food products and flavour preferences – he added that these can vary form region to region but that there is generally a big appetite for natural ingredients.

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