DSM builds up 'strategic base' in Xinghuo

DSM Nutritional Products is closing its vitamin manufacturing plant in Gonglu, Shanghai, and transferring production to its nearby Xinghuo site, which will be developed as a 'strategic manufacturing base' as part of a restructuring of its Chinese operation.

Under the plan, production of vitamins, intermediates and the Teavigo green tea extract will be expanded at Xinghuo, which will also handle production of some of the DSM Resins business and some savoury ingredients owned by DSM Food Specialties.

"Xinghuo will rapidly expand to become DSM's largest multi-product manufacturing location in China," said the firm. R&D activities at Gonglu will be relocated to the new DSM China HQ in the Zhangjiang Hi-Tech Park in Shanghai.

DSM is just one of a host of ingredients suppliers to recognise the strategic importance of setting up shop in China. Glanbia Nutritionals is building a factory near Shanghai; Solbar has just opened a soy protein concentrates plant there, and Danisco has snapped up Zhangjiagang Sanhui Chemical, a leading Chinese manufacturer of cellulose gum. A new enzymes plant in Wuxi, China, will shortly be operational.

Kerry Group, meanwhile, recently opened a technical applications facility in Shanghai, while Rousselot has just snapped up its fourth gelatine plant in the country. Associated British Foods is also building a significant presence in China.