SHANGHAI (Reuters) Nov 7 - Dutch chemicals group DSM NV (DSMN.AS: Quote, Profile, Research, Stock Buzz) said on Friday it is on track to reach its annual China sales target of $1.5 billion for 2010, despite a slowing economy.
DSM, which makes vitamins and materials used in cars, mobile phones and computers, also will likely reach or even exceed 20 percent sales growth this year in China, benefiting from the country's growing need for energy-saving and healthcare, DSM China President Jiang Weiming said at the Reuters China Summit.
"Nobody is isolated from the financial crisis, but I think $1.5 billion (in 2010) is reachable, and doable," Jiang said in an interview. "If we fail, we'll blame ourselves, not on the market."
DSM and rivals including BASF (BASF.DE: Quote, Profile, Research, Stock Buzz) and Lanxess (LXSG.DE: Quote, Profile, Research, Stock Buzz) face mounting challenges as a global economic slowdown saps demand for chemical products. DSM last month cut its full-year operating profit target to about 1 billion euros ($1.3 billion), citing weaker demand.
Although China's economy has begun slowing, growth can still reach about 8 percent next year, Jiang said, giving DSM enough opportunity to expand.
"I don't think we have any plan to shut down any China factory or fire people," he said. "New material is absolutely on top of the government agenda. And we have a lot of opportunities in China, by acquiring or cooperating with Chinese companies."
In 2007, DSM's China sales jumped 23 percent to $956 million, accounting for about 9 percent of the company's global sales of 8.76 billion euros ($11.2 billion).
Jiang said DSM's sales growth in China might be able to exceed 20 percent this year despite a series of disruptions, including weather disasters and a devastating Sichuan earthquake, ahead of the Beijing Olympics.
He asserted that DSM, a supplier of dairy ingredients and animal nutrition, benefited from China's toxic milk powder scandals that have hurt much of the country's dairy industry.
"In many ways the crisis boosts our reputation and competitiveness," Jiang said. "I think we're growing very, very good trust with farmers.
"When they buy feed ingredients, they feel safe with us, as they would be in deep trouble if their chickens, eggs, cows and milk are in trouble," he said.
(1Euro=US$1.2744)
(Reporting by Samuel Shen; Editing by Ken Wills)
