With rapid development in China, the Netherlands-based chemicals group DSM said it will raise its sales target for China in 2010 from $1 billion to $1.5 billion.
"At that time China will become our second largest market, and also the market with the quickest growth," said Jiang Weiming, president of DSM (China) Ltd.
This year, the company's sales revenue in the Chinese market is projected to surpass $900 million, with double-digit growth, Jiang said.
The company will pursue both organic growth and mergers and acquisitions to reach its goal set for the Chinese market.
It is now in talks with some Chinese companies for mergers and acquisitions, said Jiang, without elaborating.
To achieve the revised target, the company will increase its investment in China, from manufacturing to research and development.
"Continuously improving our eco footprint is an important strategic target for DSM," said Jiang. "DSM is fully aware of its responsibility to the environment in China."
The company in September started making DSM China Campus in Zhangjiang Hi-Tech Park in the Pudong New Area of Shanghai.
China Campus will comprise all Shanghai offices of DSM (China) Ltd and R&D labs of DSM in China.
DSM China Campus will become the headquarters of DSM China. It will also become DSM's biggest and most important research facility outside Europe and the US.
"China is important for all three drivers of DSM's strategy 'Vision 2010 - Building on Strengths': market-driven growth and innovation, increased presence in emerging economies and operational excellence.
"The DSM China Campus will act not only as the headquarters of DSM in China but also as the new incubator of our innovation competences," said Jan Zuidam, deputy chairman of DSM's board of directors, during the groundbreaking ceremony.
Beginning operations in China in 1963, DSM has nine joint ventures, 12 wholly owned enterprises and six wholly owned sales offices in China that employ nearly 4,000 people.
The company has decided to focus on its specialty life sciences and material sciences business.
As a result, it will initiate a divestment program for non-core businesses and step up the search for acquisitions in its core business to achieve further growth.
As all the company's joint ventures and wholly owned enterprises in China are involved in the core business, they are not in the divestment program, said Jiang.
(China Daily November 20, 2007)