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".

Other news from the department business & finance

Most read news

More news from our other portals

Is artificial intelligence revolutionising chemistry?