Royal DSM sets sights on China’s clean-energy vehicles, electronic gadget markets
The Dutch nutrition and materials company has singled out electronics and automotive as the two key industries to drive its growth in China
Netherlands-based health, nutrition and materials group Royal DSM has thrown its weight behind China’s new-found preference for clean-energy vehicles and digital connectivity, pledging to increase investment in the market amid huge changes in the country’s economic landscape.
“We have transformed from a supplier only to the multinational companies in China five years ago to a supplier for both multinationals and Chinese brands today,” said Dimitri de Vreeze, a member of DSM’s managing board who oversees the company’s business in Asia. “Huge innovations will take place in this market in the next 10 years.”
Huge innovations will take place in this market in the next 10 years
He said that after establishing 22 production sites on the mainland, DSM would continue to seek merger and acquisition opportunities as well as investing in the world’s second-largest economy, despite worries about a slowdown in growth.
In the materials field, the Dutch company has singled out electronics and automotive as the two key industries it will focus on to chase fast business growth in China.
De Vreeze said the “focus approach” could help DSM to strengthen its innovation and development capabilities to cater to Chinese clients’ fast-changing demands.
Despite China’s increasing manufacturing might, materials science is viewed as one area whose core technologies it has yet to grasp amid its efforts to move locally-made products up the value chain.