Degussa invests in the future
07-Nov-2003
"No matter how important restructuring and cost
reduction programs may be, they are not sufficient as a means of
making Degussa fit for the future. In other words, sustained organic
growth is indispensable." This was stated by Degussa Management Board
Chairman Prof. Utz-Hellmuth Felcht at the presentation of the Group's
figures for the first nine months of 2003. Examples of Degussa's
future-oriented growth concern the construction of a new methionine
production facility in Antwerp, the company's undiminished commitment
to research, development and training, and the expansion of its
presence in growth regions of global economic importance.
New methionine plant in Antwerp
At its Antwerp location, Degussa will be erecting the largest
methionine production facility in the world by 2005. Involving a
capital expenditure of approx. EUR 350 million, it represents the
largest single investment made so far by the new Degussa. Methionine
is an essential amino acid and finds use in environmentally
compatible animal feed. This is an area in which Degussa is already
the world market leader; it will now be able to expand its market
position with the new plant.
Undiminished commitment towards R&D and training
Despite the difficult economic situation, saving in research and
development (R&D) and training remain taboo at Degussa. As Management
Board Chairman Prof. Utz-Hellmuth Felcht explained: "This is a policy
I uphold with deep conviction, since the activities concerned are
ones that decide our future." In the past financial year the company
spent EUR 343 million on R&D, an area in which it employs no less than
3,250 people at over 50 research locations throughout the world. The
importance that it attaches to research and development is
demonstrated by the international 'Degussa Meets Science' forum,
which this year is taking place on November 13 in Berlin. The event
will be focusing on topics from the fields of biotechnology,
catalysis, macromolecular chemistry and nanotechnology.
Over 600 young people started apprenticeships at German Degussa
locations in September. Altogether, there are about 2,100 young
people currently undergoing apprenticeships and training at the
company, resulting in a ratio of training expenditure to total
spending of 7.2 percent, which is higher than the German industry
average of about 5 percent. Two hundred and fifty of the apprentices
are being provided training on behalf of other companies.
Due to the lack of apprenticeships in many German regions, the
company has increased the total number of apprentices and trainees
still further, creating ten additional traineeships as well as 55 new
work experience places at the beginning of October. Above 5 percent
more apprenticeship contracts were entered this year than in the
last, which saw 580 new apprenticeships.
Expansion in Asia
Degussa is also stepping up the presence of its core operations in
Asia, a growth region of global economic importance. In Thailand its
Aerosil & Silanes Business Unit is building a new facility for the
production of fumed silica at the Map Ta Phut Industrial Park, south
of Bangkok, and intends to take the facility into operation next
year. In Tokyo, Degussa-Shionogi Limited, a new joint venture for
precipitated silica, silica gel and matting agents, took up business
effective October 1, 2003.
In China, including Hong Kong, Degussa currently has seventeen
companies; twelve are manufacturing ones, whereby half of these are
joint ventures. On November 6, a new production facility for the
pharmaceutical amino acid l-methionine is being inaugurated at Wuming
in southern China. It is operated by the joint venture Nanning
Only-Time Rexim Pharmaceuticals Co., Ltd., set up in April 2001 by
the fine chemicals Business Unit and Nanning Only Time
Pharmaceuticals of southern China to produce and market
pharmaceutical amino acids.
Degussa: A powerful brand name
Degussa is also seeking to effect sustainable growth by means of
Group-wide initiatives concerned with knowledge transfer ('Linking
Knowledge' program), stronger customer orientation ('Solutions to
Customers'), as well as the consistent strengthening of Degussa as
the company's umbrella brand. The principle that the sum is more than
its parts particularly applies in that Degussa is more than the sum
of its divisions and business units.
Degussa is a multinational corporation consistently aligned to
highly profitable specialty chemistry. With sales of EUR11.8 billion
and a workforce of some 48,000, it is Germany's third-largest
chemical company and the world market leader in specialty chemicals.
In fiscal 2002, the corporation generated operating profits (EBIT) of
more than EUR900 million. Degussa's core strength lies in
highly-effective system solutions that are tailored to the
requirements of its customers in over 100 countries throughout the
world. Degussa's activities are led by the vision "Everybody benefits
from a Degussa product - every day and everywhere".
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