Sinochem Group, a China-based oil and chemicals company, has announced an agreement with Royal DSM N.V., a Dutch global life sciences and material sciences company, to form a global anti-infective joint venture to be headquartered in Hong Kong. According to a Sinochem press release, the company will pay €210 million ($278.1 million) for a half-stake in the joint venture, which needs approval from Chinese and European Union regulatory authorities.
“This partnership will benefit from the strengths of both Sinochem Group and DSM and will allow us to grasp market opportunities in China and other high growth economies, in addition to securing European and American access to high quality products,” said DSM Managing Board Member Stephan Tanda.
Sinochem Group Vice President Pan Zhengyi said the investment was in line with Chinese central government plans to invest in seven key industries of strategic importance, including four pertaining to biotechnology. He claimed it would allow the company to build its presence in the biochemical industry while saving energy consumption and reducing waste discharge by leveraging biotechnology. See Sinochem Group Press Release, December 17, 2010.