Royal DSM to deepen play in nutrition

Netherlands-based Royal DSM, a company specializing in solutions for nutrition, health and sustainable living, said it would continue investing in China for long-term success.

Royal DSM, with roots in Dutch State Mines, will also deepen its partnerships with local players, it said.

The company opened an animal nutrition and health premix plant in Hunan province recently.

Located at Baishazhou industrial park in Hengyang, the premix plant, DSM's seventh in China, underlines the company's deep commitment to the country and is a vote of confidence in DSM's long-term vision for China, said Joe Zhou, president of DSM China, the local subsidiary.

"The growing size of the Chinese market has made it a key market and production base for many international companies, and like many other multinational corporations, DSM will continue increasing investment and expanding production capacity in the country to satisfy the evolving demands of the Chinese market and provide local customers with high-quality products."

The Hengyang plant is a modern premix facility that produces solutions for livestock, poultry, aquatic and pet products. It is expected its annual production will be 120,000 metric tons eventually.

Since DSM began trading with China as early as 1963, the company has set up 27 plants with 5,300 employees in the country. The animal nutrition and human nutrition sectors have also witnessed rapid development in the past few years.

Zhou said he expects more partnerships with local players, especially in the animal and human nutrition sectors. The Hengyang unit was built after DSM forged cooperation agreements with the local government and partners, he said.

According to the Ministry of Commerce, many foreign companies have tremendous confidence in the Chinese market. Their reinvested earnings have grown by 25.5 percent in US dollar terms on a yearly basis.

In the first nine months of this year, foreign direct investment in China grew by 5.2 percent year-on-year to 718.81 billion yuan ($107.2 billion), the ministry said.

According to Zong Changqing, director-general of the department of foreign investment administration, which is part of the Ministry of Commerce, many global companies see China as a safe haven for cross-border investment and have deployed more resources in the market.

China now contributes to more than 13 percent of DSM's global revenue. Zhou expects the percentage to rise further as the country has become not only a key market and production base but an innovation hub for many multinational corporations. What is more, Chinese consumers are attaching more importance to health and nutrition.

Zhou said new business models, the growing size of the domestic market and the new dual-circulation development pattern all aim at better integrating the domestic economy with the global economy. This will not only benefit the Chinese economy but create more opportunities for international companies like DSM.