DSM has linked with the North China Pharmaceutical Group Corporation in three separate projects that will see DSM take a minority 10 per cent share in the Chinese company.
The deal, intimated at in 2004, will establish “one nutrition production joint venture” for vitamin C as well as two anti-infectives business joint ventures in the pharmaceutical area, but is not expected to take effect until the second half of the year.
It will hold a 30 per cent share in the vitamin C joint venture and 51 per cent in the new pharma businesses and cost the Dutch ingredient giant about €84m. The company said it would also leverage “its technology and management capabilities”.
The companies they were discussing “additional projects for cooperation.”
"The overall strategic partnership with NCPC provides an accelerated growth path into the Chinese market and will contribute to our target of USD 1.5 billion sales in China in 2010," said Jan Zuidam, DSM's deputy chairman of the managing board.