UpdateDSM looks for new China partner after JV suspended

30 October 2009 11:15  [Source: ICIS news]

(Adds comment from analyst in paragraph eight)

LONDON (ICIS news)--DSM is searching for a new partner in China after its joint venture with North China Pharmaceutical Group Corporation (NCPC) was put on hold, the Dutch material science and global life sciences company said on Friday.

Plans to establish a nutrition and anti-infectives joint venture, which the company had been working towards since 2004, had been suspended following a change in ownership of NCPC, the company said in statement.

“The implementation of these contracts has been delayed and possibly cannot be effectuated within a reasonable timeframe,” it added.

As a result, DSM was looking for an alternative partner and exploring other opportunities for growth in China, the company added.

China represented 8% of DSM’s net sales in 2008.

“DSM is very well positioned in China and is continuously seeking opportunities to further improve its position,” the company's managing board deputy chairman, Jan Zuidam, said.

The company has 14 manufacturing sites in China.

Xu Liehai, an analyst from Beijing-based brokerage firm China Merchants, said it was likely that the contracts between the two parties would be reworked rather that cancelled, adding that it is difficult to find suitable partnership companies in China.

Judith Wang also contributed to this story

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By: Lucy Craymer
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