Biotech player expands investment on 'positive vibes'

Novozymes, a Danish provider of biological products, said China is a country of growth and opportunity. The company sees biotech as a catalyst for China's sustainable transformation and it will continue to expand investments in the country.

The company has been in China since the 1970s and is eager to capitalize on opportunities in the country by intensifying its focus on innovation.

Amid COVID headwinds, Novozymes' China business played an important role in its overall strategy. Last year, the company netted a 9 percent sales growth in both emerging and developed markets.

"Sales in the Asia-Pacific region account for 20 percent of our total revenue and China is the biggest contributor. Going forward, I have high expectations for China's continued contributions to our growth," said Ester Baiget, president and CEO of Novozymes.

Baiget, who visited China recently, said she has seen extremely positive vibes in the country and is highly confident about future growth in China.

"China is a strategic priority market for us as it has strong manufacturing infrastructure, fast digital development and a large, untapped consumption market," she said.

The company's manufacturing facilities in China produce a wide range of products, including enzymes and microorganisms, which are used in various industries, such as bioenergy, food and beverage, and laundry detergents, for both Chinese and global customers. Two of its manufacturing sites in China account for one-third of the company's global enzyme production.

In the food and beverage sector, enzymes, which are proteins, can help improve the texture and taste of bread. In animal health, enzymes can be used in biological feed, which is safe, environmentally friendly and residue-free, according to a report on China's biological feed industry.

The company is also committed to strengthening its collaboration with Chinese industrial players and expanding its research and development efforts locally. As a strong growth engine for both global and local markets, its R&D center in China has been operating for 25 years and has been collaborating with various domestic universities.

Meanwhile, with the accelerated implementation of China's dual carbon goals — peaking carbon dioxide emissions by 2030 and achieving carbon neutrality by 2060 — Novozymes said it is thrilled about China's pledge, as biotech can provide solutions to a variety of sectors and contribute to the many dimensions and objectives of China's carbon neutrality plan.

As China's top policymakers have pledged efforts to attract more foreign capital and promote further opening-up, it is offering new opportunities for the growth of more multinationals.

"China's growth potential is being released at an accelerated pace this year. Foreign companies are actively tapping market demand and speeding up their investments. This has further reflected their confidence in growing business in the country," said Bai Ming, deputy director of international market research at the Chinese Academy of International Trade and Economic Cooperation in Beijing.

Novozymes said it is optimistic about the potential benefit such moves can bring to foreign investors.

"We are pleased to see the Chinese government's recent efforts to optimize the investment environment for foreign investors and encourage investment in new energy, green and low-carbon innovation and demonstration," Baiget said.