Sino-German industrial JV flourishes in Hunan

Inside a production facility in Xiangtan, Hunan province, rows of air separation units steadily hum, transforming untreated air into oxygen, nitrogen and other chemicals for steel mills, hospitals and electronics factories throughout the region.

The plant is owned by Hunan Xianggang Messer Gas Products Co Ltd, a joint venture established in 1998 between Xiangtan Iron and Steel Group and Germany's Messer Group, the world's largest private company specializing in industrial, medical and specialty gases.

Zhang Defu, a regional director of Messer China and chairman of the JV, said the JV was born out of complementary needs. Messer contributed capital, technology and decades of operational expertise, while Xiangtan Iron and Steel provided a strong industrial base and access to the broad market in Central and South China.

"Messer had strong confidence in the local market in Hunan. It was a case of either side having what the other needed," Zhang said.

Starting with a single production site employing more than 200 people in Xiangtan, the JV now operates 10 facilities across Hunan and beyond, with cumulative investments exceeding $250 million.

Over nearly 30 years, the venture has navigated the complexities of cross-cultural management, Zhang said. "Although differences existed in areas such as management style and safety standards, we shared the same goal and communicated on the basis of mutual respect."

As one of the earliest and largest foreign-invested enterprises in Hunan, the JV has benefited from the province's improving business environment, demonstrating that foreign companies can compete on an equal footing with local firms and grow steadily over the long term, he added.

"The local government provided strong support for our development, including preferential tax policies and transparency in regulations."

In recent years, the company has focused more on digitalization and decarbonization of production lines.

"With the help of digital and intelligent technologies, we managed to reduce electricity consumption in the production process, which indirectly cuts carbon emissions," Zhang said.

Beyond its own operations, as an industry leader in the region, the company has helped elevate safety and quality standards across Hunan's industrial gas sector. Recognized by local authorities, Xianggang Messer's production safety protocols have become a benchmark for other industry peers and regulators.

The company's success is among a growing number of cooperation stories that illustrate the broader partnership between Hunan and its foreign partners. In 1985, the province signed an agreement with the German state of Hessen, where Messer Group is headquartered. Over the past 40 years, this tie has expanded across trade, tourism, environmental protection and talent training.

Matthias Leder, CEO of the Chamber of Commerce and Industry Giessen-Friedberg in Hessen, described the partnership as "very successful" and one that extends well beyond official exchanges.

"Business-to-business activities, trade fairs and vocational training programs — along with chamber cooperation — have also played important parts in the shared success story," Leder said, adding that the potential for further cooperation is vast, particularly in areas such as the environment, mobility and health.

According to the Foreign Affairs Office of Hunan, the province has established sister-city and similar partnerships with 120 cities and regions worldwide. To further consolidate these ties and promote cooperation in trade and innovation, the office and the Hunan Provincial Department of Commerce will host the 2026 Hunan International Friendship Cities Economic and Trade Exchange Event & Cooperation Dialogue this week. Scheduled from Friday to Sunday in Changsha — the provincial capital — the event will bring together more than 100 guests from about 29 countries and regions.

Contact the writers at limuyun@chinadaily.com.cn