Eric Baden, president of Degussa (China), said Degussa AG is expected to pour 37 million euros (US$35 million) into the new company.

"The investment company will transform our presence in China from a foreign company exporting to China to a responsible corporate citizen who develops and manufactures products here and exports them to other Asian countries," he said.

The Beijing Committee of Foreign Trade and Economic Co-operation has granted preliminary approval to Degussa and the business licence will be available soon, Baden said.

"Through our investment company, we intend to pursue a host of new investment projects jointly with Chinese partners as well as wholly foreign-owned," he said.

Degussa is the largest producer in specialty chemicals in the world and is also the third largest chemical company in Germany.

Since 1988, Degussa has opened a total of 11 sites in China with an investment of US$80 million. Degussa's sales in China reached 250 million euros (US$236 million) last year, 20 per cent generated by its ventures in China.

Baden believes it is the perfect time for Degussa to develop its relationship with China now that the country has entered the World Trade Organization and that the country is set to host the 2008 Olympic Games.

As a chemical company who places much importance on sustainable development, Degussa is keen to share its environmental protection practices with the Chinese chemical sector and with organizers of the 2008 Olympics.

(China Daily June 24, 2002)