25 MNCs selected for excellent performance in investing in China
September 08 , 2020
On September 8, 2020, the Center for China and Globalization (CCG) released the “Recommendation List for Globalizing Enterprises” at the 7th China Inbound-Outbound Forum. CCG selected 25 multinational companies (MNCs) showing outstanding performance in investing in China for the list.
The recommendation list reflects how pillar sectors of the national economy, such as automotive, energy, and chemicals are in the process of high-quality transformation and enhancing industrial chains. MNCs from the automotive industry are focusing on new energy vehicles as a key innovation. MNCs from the energy and chemical industries are focusing on clean energy and new materials research and development. MNCs from the financial industry are benefitting from new policies and accelerating their entry into China’s insurance, credit and financial derivatives markets.
Furthermore, China’s consumer market is showing signs of revitalization in the post-pandemic era, attracting MNCs from the consumer industry to increase investment in China. MNCs from the medical and pharmaceutical industry are optimistic about the potential of China’s medical industry and are investing in building production bases and innovation bases in China to empower the digital development of China’s medical industry.
The following is the “Recommendation List for Globalizing Enterprises” and the reasons for firms being selected.
AXA Group
AXA was founded in France in 1816 and is one of the largest insurance groups in the world. On December 14, 2019, AXA officially announced the completion of the acquisition of the remaining 50% stake in AXA Tianping Property & Casualty Insurance Company Limited (AXA Tianping) from its domestic shareholders, becoming the largest 100% foreign-owned P&C insurer in the Chinese market. AXA Tianping for a total cash consideration of CNY 4.6 billion has been approved by the regulatory authorities. AXA’s acquisition will enable it to expand its investment in China and diversify its insurance business.
BASF SE
BASF SE is a German multinational chemical company and the largest chemical producer in the world. In July 2018, BASF signed a Memorandum of Understanding (MoU) for the Verbund site with the Guangdong provincial government, announcing that it would launch its smart Verbund project in Zhanjiang city, and signed a framework agreement in January 2019. The project in Zhanjiang is expected to have a total investment of USD 10 billion, which will be built and operated independently by BASF, and the project as a whole will be completed around 2030, which will become BASF’s third-largest site worldwide, following Ludwigshafen, Germany, and Antwerp, Belgium.
In March 2019, BASF announced the investment of nearly 34 million euros in the construction of new research and development facilities at its Shanghai innovation park.
BASF’s investment in China is the first wholly foreign-owned enterprise in China’s heavy chemical industry. From building the Verbund site to expanding its global research and development facilities, BASF is working to deepen its presence in the Chinese market.
PepsiCo Inc
PepsiCo Inc is one of the world’s leading food and beverage companies and was one of the first multinational companies to enter China. PepsiCo has been operating in the country for nearly four decades.
According to PepsiCo’s APAC Sector CEO, Ram Krishnan, PepsiCo’s investment in China over the past 10 years has exceeded CNY 53 billion, becoming one of PepsiCo’s most important markets globally.
PepsiCo has made several acquisitions over the past year, including investing approximately CNY 900 million to acquire approximately 26% of the issued ordinary shares of Natural Food International Holding Ltd, China’s second-largest natural health food company in July 2019, and then acquiring Hangzhou Haomusi Food Co. Ltd., one of the largest online snacks companies in China, from Haoxiangni Health Food Co. Ltd. for USD 705 million in February 2020.
Also, in June 2019, PepsiCo announced a USD 50 million investment to build a new Pepsi Food Sichuan production base in the Deyang Economic and Technological Development Zone in Sichuan Province. The plant is also Pepsi’s first potato chip factory in southwest China.
BMW
In November 2019, the Spotlight Automotive Project jointly invested by BMW Group and Great Wall Motors was officially launched in Zhangjiagang, Jiangsu Province, with a total investment of CNY 5.1 billion. The project created a new model of Sino-foreign cooperation in the history of Chinese automotive development. In December of the same year, BMW China Investment Ltd. was established with a registered capital of RMB 50 million to facilitate BMW’s further expansion of investment in China.
Currently, China is the BMW Group’s largest market in the world. BMW is steadily pushing ahead with its investment plans in China to strengthen research and development in the fields of digitalization and electrification, and the BMW Group’s investment moves reflect its recognition of China’s opening-up policies and determination to expand investment and deepen cooperation in the country.
BlackRock, Inc.
As the world’s largest asset manager, BlackRock’s global management scale reaches USD 7.32 trillion. BlackRock has been cultivating the Chinese market for a long time, and previously invested in China mainly through QFII, RQFII Shanghai/Shenzhen Stock Connect, Bond Connect, and China Interbank Bond Market. In September 2017, BlackRock established Blackrock Investment Management with a private fund management (PFM) qualification and was granted a private placement license in December, making it an early international asset management giant to enter the Chinese market.
On August 21, 2020, BlackRock Financial Management, Inc. received approval from the China Securities Regulatory Commission to set up a wholly-owned mutual fund management company in the country, which is the first wholly foreign-owned public fund management company license in China.
Danone S.A. (Danone)
Danone is a European multinational food-products corporation with more than 100,000 employees and a presence in more than 120 markets around the world. Danone entered the Chinese market in the late 1980s. China is now Danone’s second-largest market in the world.
In June 2020, Danone acquired Murray Goulburn Dairy (Qingdao) Co and announced on July 16 that it would invest around EUR 100 million to strengthen its Specialized Nutrition business in China. The investments include the opening of a research center in Shanghai and the expansion of capacity at its Jiangsu facility.
Danone is taking full advantage of the huge potential of the Chinese market and continues to strengthen its commitment to the Chinese market. The opening of the research center in Shanghai will further enhance Danone’s research and innovation capabilities and support the implementation of the Healthy China 2030 plan.
Volkswagen Group
The Volkswagen Group, headquartered in Wolfsburg, Germany, is one of the world’s leading manufacturers of automobiles and commercial vehicles. Since the establishment of its first joint venture in China in 1984, Volkswagen has grown with the Chinese automotive industry over more than three decades. In recent years, Volkswagen is transforming from a traditional car manufacturer to a provider of sustainable mobility solutions. By strengthening its position and advancing the JAC Volkswagen joint venture through a capital increase, Volkswagen is taking the next step in its Chinese electrification strategy, helping the Chinese auto market and Volkswagen achieve their sustainable development goals.
Volkswagen Group China has established 33 plants in Shanghai, Changchun, Dalian, Nanjing, Yizheng, Chengdu, Foshan, Ningbo, Changsha, Urumqi, Hefei, and Tianjin to manufacture vehicles and components in China. By the end of October 2019, Volkswagen Group China has more than 100,000 employees in China, including those of joint ventures.
In May 2020, Volkswagen announced that with the signing of binding agreements, Volkswagen (China) Investment Co. Ltd. would become the largest shareholder in Gotion, with 26 percent of the shares, through a buy-in of around EUR 1.1 billion. Volkswagen is the first global automaker to invest directly in a Chinese battery supplier.
Daimler AG
Daimler AG, founded in 1886 and headquartered in Stuttgart, Germany, is one of the world’s largest manufacturers of automotive companies. With its Mercedes-Benz Cars & Vans, Daimler Trucks & Buses, and Daimler Mobility divisions, the Group is one of the leading global suppliers of premium cars and one of the world’s largest manufacturer of commercial vehicles.
After investing CNY 1.1 billion in 2018 to establish a Research and Development Tech Center in Beijing, in July 2020, Daimler Greater China invested CNY 904.5 million to hold approximately 3% of Funeng Technology. In 2019, Daimler and Zhejiang Geely Holding Group announced that they established the global joint venture “smart Automobile Co., Ltd.” ，with a registered capital of CNY 5.4 billion, aiming to transform smart into a leading player in premium-and intelligent electrified vehicles.
In recent years, Daimler has been deepening its research and development of new energy technologies in China, investing in local battery companies, taking the Chinese market as the technology point of origin, radiating the global supply chain, further tapping the potential of cooperation with Chinese high-tech partners, and injecting vitality into China’s high-tech industry.
Toyota Motor Corporation (TMC)
Toyota Motor Corporation is an internationally-renowned automobile manufacturing company. It was established in 1937, headquartered in Japan. In recent years, Toyota has continuously increased its investment in China and actively participated in production, research and development activities in China to promote the development of China’s new energy vehicle industry.
In June 2020, Toyota launched a new electric vehicle plant in Tianjin with its local partner FAW Group, with a planned manufacturing capacity of 200,000 new energy vehicles a year and a total investment of CNY 8.495 billion.
In addition to the new energy plant, in May, TMC established Tianjin FAW Toyota Motor Company Ltd. (TFTM), a joint venture for the production of passenger vehicles, started production of the new Corolla. In the same month, Toyota signed a joint venture agreement for the establishment of United Fuel Cell System R&D (Beijing) Co., Ltd. (FCRD) with five Chinese enterprises. FCRD’s primary business will be the development of fuel cell systems for commercial vehicles to contribute to the realization of a clean mobility society in China. Toyota will invest RMB 5.019 billion, accounting for 65% of the total.
Earlier, in April, TMC launched its new joint venture company with Chinese automaker BYD. The new company focuses on the research and development of battery electric vehicles (BEVs) in China, the world’s biggest auto market.
Qualcomm Inc.
Qualcomm Ventures was launched in the United States in November 2000 with an initial USD 500 million allocation. In recent years, Qualcomm has continued to increase its presence in China, investing in 5G and AI, two enabling technologies that are driving the development of China’s high technology and the full integration of China’s electronics manufacturing industry with the global supply and value chains.
On June 11, 2020, Qualcomm Ventures announced that it has invested in three Chinese startups, including Redtea Mobile, Tencent-backed cloud gaming startup Dalongyun and Tensor Technology, in an attempt to raise its stake in China’s 5G development in a post-virus world.
Qualcomm Ventures, the venture capital arm of US chip supplier Qualcomm Inc., has been an active supporter of innovation and entrepreneurship in China and has invested in more than 60 companies, many of which have already established a strong presence in the industry.
Royal Dutch/Shell Group
The Royal Dutch/Shell Group was formed in 1907. It forms one of the world’s largest businesses. The group consists of more than 2,000 companies worldwide controlled by two parent companies. The “Shell” Transport and Trading Company, a U.K.-registered company, has a 40% interest in the group, and the remaining 60% is owned by the Royal Dutch Petroleum Company, a Netherlands company. Collectively, the group is involved in oil and gas exploration, production, refining, transportation, and marketing.
On May 17, 2020, CNOOC Oil & Petrochemicals Co. Ltd (CNOOC), Shell Nanhai B.V (Shell) and the Huizhou Government announced a strategic cooperation agreement to further expand the CNOOC and Shell Petrochemical Company (CSPC) 50:50 joint venture in Huizhou, Guangdong Province, China. The project is intended to include the construction of a new 1.5 million-ton-per-year ethylene cracker, with the mega-site ringing economies of scale and enhanced competitiveness.
The project in Huizhou is an important part of building a world-class green petrochemical cluster in coastal Guangdong. The project will contribute to the construction of a world-class petrochemical base in the Guangdong-Hong Kong-Macau Greater Bay Area, promote the upgrading of the industrial structure of the Greater Bay Area to the medium and high end, further enhance the competitive advantages of the Greater Bay Area, and serve as an industry leader to drive the development of Guangdong’s mid- and lower-stream industries and modern manufacturing services.
Honeywell International Inc.
As one of Global Fortune 500 high-tech companies, Honeywell was founded in 1885, and its history in China dates back to 1935 with the first franchise in Shanghai. Today, all four of Honeywell’s Strategic Business Groups are represented in China, with its Asia-Pacific headquarters in Shanghai. Honeywell has over 50 wholly-owned enterprises and joint ventures in more than 30 cities across the country, including 20 plus manufacturing sites, with about 11,000 employees, among which 20 percent are technologists.
On May 19, 2020, Honeywell’s emerging market headquarters and innovation center was established in Wuhan, reflecting Honeywell’s commitment to long-term growth in China. The emerging markets headquarters mainly deals with intelligent building technologies, performance materials and technological solutions for safety and productivity. In the post-pandemic period, Honeywell’s ventilation control systems will help promote the upgrading of public health facilities, help deepen new infrastructure and improve the safety and comfort of schools and places with high susceptibility levels.
Air Products
Air Products is a world-leading industrial gas company in operation for nearly 80 years. Focused on serving energy, environment and emerging markets, the Company provides essential industrial gases, related equipment and applications expertise to customers in dozens of industries, including refining, chemical, metals, electronics, manufacturing, and food and beverage.
Air Products entered mainland China in 1987. Since then, it has demonstrated its commitment to the region by investing more than RMB 8.2billion, established more than 48 joint venture and wholly-owned companies, and established engineering and manufacturing facilities in the country.
On June 9, 2020, the hydrogen energy project of Air Products was officially settled in Haiyan with a total investment of USD 1 billion. The project is divided into three projects: hydrogen energy preparation and packaging, manufacturing of parts for key equipment in the hydrogen industry, and demonstration city construction for hydrogen energy utilization.
Jiaxing is a pilot city in Zhejiang in hydrogen technology innovation and industrialization, and Air Products will help it form a complete hydrogen industry layout which includes hydrogen production, storage, transportation, hydrogen refueling station, hydrogen fuel cell system and hydrogen vehicles, according to a senior official from the Jiaxing Municipal Government.
Unilever Plc.
Unilever is one of the world’s leading consumer goods companies, making and selling around 400 brands in more than 190 countries.
In June 2020, Unilever laid the groundwork to expand its China food production base, with a total investment of EUR 100 million, which makes it the largest investment that Unilever has approved in its food business sector in recent years, showing the industry leader’s confidence in the Chinese consumer market’s potential and its commitment to continue its investment in the country.
In January, Unilever actively seeks cooperation with Chinese enterprises, firstly signing a Memorandum of Understanding (MoU) to drive sustainable business initiatives in the supply chain with JD Logistics.
Unilever is actively planning for the next decade in China by complementing its strengths with the Chinese companies. Unilever has always been optimistic about China’s business and has repeatedly stated that it will continue to increase its investment in China, especially in the Yangtze River Delta region, to seek sustainable development and establish a long-term foothold in the Chinese market.
American Express Company (AEC)
Founded in 1850 and headquartered in New York City, American Express Bank is a leading international financial services corporation.
In June 2020, American Express announced that its joint-venture in mainland China, Express (Hangzhou) Technology Services Company Limited (“Express Company”), has received approval from the People’s Bank of China (PBOC) for a network clearing license. With this, American Express becomes the first foreign payments network to be licensed to clear RMB transactions in mainland China. The company expects to begin processing transactions later this year.
The entry of American Express’s joint-venture into China will bring new changes to the domestic clearing system, which is dominated by UnionPay, stimulate the vitality of the domestic financial market, provide more diversified services to consumers and further promote the openness and innovation of China’s consumer finance market.
Meiji Holdings Co., Ltd.
Meiji Holdings Co., Ltd. is a Japanese food manufacturer with headquarters located in Tokyo. Established as a confectionery company under the name Tokyo Confectionery Co., Ltd. in 1916, the company branched out into the pharmaceutical business, while expanding the food segment further into the dairy industry.
Since September 2019, Meiji has announced four investments related to the Chinese market in less than a year: the first plant in North China with a total investment of approximately RMB 2.1 billion in Tianjin, the expansion of its Suzhou plant for more than RMB 148 million, the acquisition of AustAsia Investment Holdings Pte LTD for approximately RMB 1.8 billion, which is engaged in ranching operations in China and established Meiji Food (Guangzhou) with a registered capital of RMB 1.2 billion.
In 2013, the yogurt and fresh milk products produced at Meiji’s Suzhou plant were launched in Suzhou, Shanghai, Hangzhou and Ningbo, making it the first foreign dairy company to enter China’s low-temperature dairy market on a large scale. In its business plan, Meiji has positioned China as its most important overseas market. Against the backdrop of the U.S. and Japanese governments’ demands for companies to pull out of China, Meiji continues to invest heavily in China, demonstrating its commitment to the market and the attractiveness of China’s huge consumer potential to foreign investors.
J.P. Morgan Chase & Co.
As one of the global financial giants, J.P. Morgan Chase & Co. immediately ramped up its presence in the Chinese derivatives market when the limitations on the ratio of foreign shareholding in securities and fund management firms were fully lifted starting in 2020.
In the securities sector, J.P. Morgan announced in March the opening of J.P. Morgan Chase Securities (China) Limited, its majority-owned securities company in China, has commenced business providing domestic and international clients with a comprehensive set of financial products and services, including securities brokerage, securities investment advisory, and securities underwriting and sponsorship.
In the futures sector, J.P. Morgan was the first foreign-owned futures company in China approved by the China Securities Regulatory Commission in June. In the area of asset management, J.P. Morgan Asset Management announced that it had entered an agreement to purchase the 49% stake in China International Fund Management (CIFM) held by Shanghai International Trust.
J.P. Morgan has a full range of business in China, which shows its confidence in developing the Chinese market. Foreign investment restrictions on entry into the financial industry have been eased, and foreign brokerage firms, have been increasing their presence in the Chinese derivatives market. By their advantages in corporate governance and risk management, foreign companies will bring a huge impact on their concepts and are expected to bring a “catfish effect” to China’s financial industry.
Merck KGaA
Founded in 1668, Merck is the world’s oldest pharmaceutical and chemical company. It is divided into three Businesses: Healthcare, Life Sciences and Performance Materials. Merck has been in China for 87 years since its first branch was established in Shanghai. In recent years, Merck’s Healthcare in Nantong, Life Science in Nantong and Performance Materials in Shanghai have investments of EUR 170 million, EUR 80 million, and EUR 44 million, respectively. Additionally, Merck hosts a global Healthcare R&D hub in Beijing, Display Materials R&D Center, Life Science labs in Shanghai. China has become an important source of innovation for Merck.
In July 2020, Merck and Shanghai Pudong New Area Government signed a strategic cooperation agreement at the World Artificial Intelligence Conference, announcing that they will work together to build an open innovation platform with global influence – the “M LabTM Collaboration Center” – to expand the China Center for Light-Emitting Diode Technology (Phase II of the Laboratory and to build the first organic light-emitting diode material production base. These two investments will exceed CNY 100 million. In July 2019, Merck and Kingmed Diagnostics reached a strategic cooperation to focus on the precise detection and treatment of colorectal cancer in China. In October and November of the same year, Merck’s innovation centers in Shanghai and Guangzhou were officially opened, aiming to jointly develop innovative technologies with local government industrial parks, incubators, academic institutions, investment institutions and other partners in the innovation system.
Merck’s setting up innovation bases and R&D centers in China reflect the attractiveness of China’s innovative ecological resources to foreign investors, boost innovation in the fields of healthcare, life science and related emerging fields such as artificial intelligence, and inject impetus into the development of China’s medical and health industry.
Johnson & Johnson
In 2019, Xi’an Janssen Pharmaceutical Ltd., which belongs to Johnson & Johnson, invested USD 397 million in a new large-scale innovative supply chain production base in Xi’an, and Johnson & Johnson Medical Devices Companies invested USD 180 million to put into production in the new Ethicon factory in Suzhou Industrial Park. This project is the first 4K endoscope imaging system in China and it is also the first time Johnson & Johnson has introduced the production technology of such advanced equipment to the market outside the United States. In October of the same year, Johnson & Johnson announced in Beijing new measures to increase its “Made in China” by expanding its investment in China and expanding its partners. These projects include the establishment of the Johnson & Johnson China Data Empowerment Center, the creation of local high-end manufacturing capabilities in China, the exploration of innovative medical solutions with partners, and the introduction of innovative medicines to actively respond to social and public health challenges and other important development plans.
Being a multinational enterprise that has entered the Chinese market earlier since the reform and opening up, Johnson & Johnson established Xi’an Janssen Pharmaceutical Ltd. Johnson & Johnson has been increasing its investment in China in recent years, actively deploying artificial intelligence and big data, and is committed to AI-enabled medical innovation. Through continuous innovation of medical solutions, it improves the level and accessibility of medical care and accelerates the upgrading of China’s medical and health industry, to help China’s medical industry to create an open innovation environment.
Nestle
On May 20, 2020, Nestlé announced a capital increase plan of CNY 700 million. The plan is mainly to increase capital and expand production of Nestlé Purina PetCare in Tianjin, introduce international advanced production facilities for the production of professional prescription food and wet food to provide richer and more upscale food choices for pets, introduce new high-value-added products, and set up its first plant-based production line in Asia in Tianjin. Also, Nestlé will increase investment in its confectionery business and upgrade its “Cheng Zhen “wafer production line. Nestlé defines the significance of this series of measures to further strengthen its presence in China and to further enrich its product portfolio through technological innovation and high-end products.
Schneider Electric
In April 2020, Schneider Electric signed an agreement with the Management Committee of Xiamen Torch Development Zone for High Technology Industries and Xiamen Huli District Government, planning to increase investment in the local area. According to the agreement, Schneider Electric (Xiamen) Switchgear Co., Ltd. will expand its research and development in the next three to five years, and put into production many advanced production lines to produce digital electrical products in line with the concept of sustainable development. In September 2019, Schneider Electric officially settled in Xi’an, two major design centers in the world, the Global Low Voltage Complete Equipment Design Center and the Global Green Energy Design Center.
Schneider Electric is a global leader in energy efficiency management. Its main business includes electric power, industrial automation, infrastructure, energy-saving and efficiency, energy, etc.
At present, China’s digital economy has made great progress, and the “new infrastructure” is expected to accelerate the digital transformation of China’s industries. The new project will not only help to strengthen Schneider Electric’s position as a digital leader in China, but also drive the digital upgrading and economic development of Xiamen’s local industrial chain, help Chinese industries achieve a win-win situation for efficient and sustainable development, and promote high-quality development of China’s economy. At the same time, the two major design centers landed in Xi’an, demonstrating Schneider Electric’s determination to further deepen the market in Shaanxi and even the western region, as well as its confidence in enhancing the global R&D and production capabilities of the western region with innovative digital technology.
Panasonic Co., Ltd.
In 2019, Panasonic established a regional company in China, Panasonic China Northeast Asia Company, to delegate decision-making power to the Chinese management to strengthen decision-making efficiency and integration with the Chinese market. In the same year, the company invested 100 million US dollars in Jiaxing for the construction of Panasonic’s kitchen appliance technology project, covering an area of about 150 acres. The main business is the research and development and production of kitchen-related home appliances and related kitchen supplies. The project is expected to be completed and put into operation in September 2021. After reaching production capacity, the sales volume is expected to reach CNY 3.4 billion and tax payment can reach CNY 80 million.
Panasonic is a global electronics manufacturer engaged in the production and sales of various electrical products. The cooperation between Panasonic and China began in 1978. Range from technology introduction, investment and establishment of joint ventures and sole proprietorships, to the establishment of R&D bases, Panasonic’s business scale in China has been expanding day by day. In terms of Panasonic’s investment in development, manufacturing, sales and other operating resources, China is the largest overseas market outside Japan. The establishment of the China Northeast Asia Company is a big step taken by Panasonic in the Chinese market in the next “Centenary Goal” journey, which is conducive to strengthening the development of Panasonic in China and making new contributions to the evolving Chinese market.
General Electric Company
In September 2019, General Electric Company (GE) officially started the project of investing CNY 2.5 billion to build a wind turbine production base in Puyang, which will contribute to China’s clean energy development. In the past year, GE has actively launched multi-level cooperation in clean energy power generation with Chinese companies and local governments. In July 2019, GE signed investment agreements for offshore wind power projects with the People’s Government of Jieyang city and the Management Committee of Guangzhou Development District. In June 2020, General Electric Renewable Energy Group signed the first onshore wind power cooperation agreement with Power China Guizhou Engineering Co., Ltd.
GE is one of the world’s largest diversified service multinationals. GE started doing business in China as early as 1906 and was considered one of the most active and effective foreign companies in the country at the time. So far, all of GE’s industrial product groups have operated in China and have more than 10,000 employees.
China is the world’s largest and most competitive wind power market. GE’s increased investment in China and the establishment of production bases not only demonstrates GE’s continued optimism and long-term commitment to the Chinese market but also marks the further deepening of GE’s localized construction of value chains.
Starbucks Corporation
Starbucks announced in March 2020 that it officially initiated Starbucks’ “coffee innovation industrial park” project in China, which would cover an area of 80,000 square meters. The company signed a contract with Kunshan City in Jiangsu Province on March 3rd. Starbucks would invest about RMB 900 million to build the first phase of the project — a green coffee roasting factory. This was Starbuck’s largest investment outside the US and its first productive strategic investment in the Asia-Pacific market. At the same time, Starbucks China also announced its strategic cooperation with Sequoia China, aiming to jointly carry out strategic investment and accelerate the innovative digitalization of Starbucks China.
Starbucks moved into China in 1999 and nowadays has over 4400 outlets in more than 180 cities in Mainland China. Today, China has become the largest market overseas for Starbucks with the fastest developing pace.
Starbucks’ move to establish an innovation industrial park in China demonstrates its emphasis on the Chinese market and its long-term commitment to developing China’s specialty coffee industry, which is conducive to creating more job opportunities for promoting the smart and sustainable production of Chinese coffee and elevating China’s coffee industry to new heights in the global market.
INEOS Group Holdings
INEOS is one of the world’s largest chemical producers. The company is also known for its success in the sports, fashion, and the automotive industry. China is one of the world’s largest ABS markets. This new investment will provide a tremendous opportunity for INEOS to further develop its presence in China.
INEOS has announced its plans to build a new ABS plant in China with a planned annual capacity of 600,000 tons. To be located in Ningbo, China, the new production site will be located next to INEOS’ recently acquired polystyrene plant. Construction of the plant is planned to begin this year and is expected to be operational in 2023.
In 2019, INEOS completed the acquisition of the polystyrene sites from Total S.A., following receipt of all applicable regulatory and legal approvals. The transaction, which was agreed on August 31, 2018, includes the purchase of the Foshan site in the Guangdong Province in South China and the Ningbo site in the Zhejiang Province in Eastern China and two related sales offices in Guangzhou and Shanghai.
