2004/2/5

from China Daily
 
Messer to move in on growing market

The German-based Messer Group, a specialist in industrial gases, is planning to further expand its investment in China following the planned exit of investors Goldman Sachs and Allianz Capital Partners from the group.
 
"We intend to continue our successful investments in the world's fastest-growing economic region in order to participate in the area's successful industrial development," said Harald Pinger, Messer's chief financial officer, who is also responsible for Messer's operations in China. "We have specific plans for a total of 10 new individual projects with an investment volume of 50 million Euros (US$62.8 million) over the next four years in China."
 
Messer China's mid-term plan forecasts revenue growth of 60 per cent over the next 4 years. Among all the subsidiaries of the new Messer Group, China is expected to achieve the highest growth rate in the years to come.
 
"Our growth will mainly be generated by new production capacities in our core regions in China. Demand is growing very strongly and we are committed to the expansion of our production," said Helmut Schneider, chief executive officer of Messer China.
 
Last year, Messer achieved several major breakthrough developments in its Chinese expansion.
 
For instance, Messer Ningbo Sunshine built a new gas liquefier.
 
The company also undertook the construction of a new air separation unit in Xianggang Messer Gas Products Co Ltd in Hunan Province, which is expected to be completed by April. The Hunan project involves a total investment of 90 million yuan (US$11 million).
 
Also, a new joint venture company was recently established in Foshan, Guangdong Province. The project involves a total investment of 83 million yuan (US$10 million) and is expected to start operating in November.
 
A Helium facility is under construction in Wujiang. Located in Jiangsu Province, the project involves a total investment of 10 million yuan (US$1.2 million) and will begin operations by the end of August.
 
"Besides those projects under construction, we are about to complete negotiations for a new plant in Yunnan, and we are also analyzing several additional investments in Jiangsu and in Sichuan," said Schneider. "The Chinese industrial gas market is seen as one of the most dynamic markets in the world, with an annual growth rate of 15 per cent. If the Chinese economy keeps a steady growth path, its demands for industrial gas will rise with double digit growth rates."
 
Recently, Messer made an agreement with the French Air Liquide Group regarding the sale of its operations in Britain, US and Germany.
 
"Although the Messer Group will be a smaller business in future, it will still have enough financial strength and managerial capacity to sustain growth," said Pinger.
 
Messer is a very strong regional player in Europe and China. Due to the nature of the industrial gas business, global presence is not decisive for regional success and growth, added Pinger.
 
The new family-owned Messer Group will continue operating businesses in 26 countries across eastern and western Europe, as well as in China and Peru, with over 3600 employees.
 
Messer has a diverse customer base and includes the steel, metal fabrication, chemicals, food, pharmaceuticals, auto and electronics industries, as well as applications in medicine and environmental processes.
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