Addressing yesterday's inauguration ceremony of the Degussa (China) Holding, Utz-Hellmuth Felcht, chairman of the Board of Management of Degussa AG, said the holding company, based in Beijing, is expected to double Degussa's sales in China in the coming years.

German-based Degussa AG generated sales of 210 million euros (US$222.6 million) in China in 2001, and while the figure for 2002 has not yet been finalized, it is expected to be significantly higher, said Felcht.

It is anticipated that around 37 million euros (US$39.2 million) will be invested by Degussa AG in the new company.

"Due to its size, its sustained dynamic development and its great economic potential on the whole, the Chinese market is a highly attractive one for Degussa, the third largest chemicals company in Germany and the largest in specialty chemicals in the world," said Felcht.

He predicted that the Chinese specialty chemicals sector will take second place behind the European Union in global rankings by 2008.

The new holding company will act as parent company of Degussa's operations in China.

All stakes currently held by Degussa AG or other Group companies in China-based firms are being transferred to the new holding company.

"The holding will be working on new investment projects, in some cases in collaboration with Chinese partners," said Eric Baden, president of the Degussa (China) Holding.

Degussa currently has 15 companies in China.

By opening the Degussa (China) Holding, Degussa will significantly increase its involvement in China, said Felcht.

A multi-user production location is being planned in China, in which infrastructure will be shared by several Degussa units to achieve optimum cost effectiveness and use of utilities.

(China Daily January 21, 2003)