Chinese market with a huge potential has filled the top global special chemicals giant, Degussa of Germany, with confidence to launch a new round of investment in China by forming the new Degussa Special Chemistry (Shanghai) Co., Ltd.

The initial investment to the brand-new company, with 100 percent financing by Degussa, will total 26 million US dollars. An initiative project of the new venture, a mylar production line is expected to go into operation in early 2006.

Insiders say the new company signifies another major step forward Degussa has taken to get a bigger niche of the Chinese market following its launch of a research and development center in Shanghai last year.

Utz-Hellmuth Felcht, chairman of the board of directors of Degussa, said the good market prospective has inspired Degussa to increased investment in China. He disclosed that Degussa has set to develop a complete industrial chain covering production, sales and technological development in China.

Degussa has established 17 business agencies in major Chinese cities including Beijing, Guangzhou, Nanning, Qingdao and Shanghai, and Hong Kong Special Administrative Region since its entry into the Chinese market in 1988. Its main products include carbon black, amino acid, polyurethane, chemical building materials and plastic products.

Degussa's sales in China amounted to 280 million euros last year, a rise of 17 percent over last year.

Degussa's annual sales top 11 billion euros, with its businesses scope involving chemical building materials, precision and industrial chemicals, functional materials, paint and super-quality stuffing and special polymer.

(Xinhua News Agency November 3, 2004)