DSM China president has big ambitions for the successful company and its talented team of employees

Jiang Weiming, president of DSM China, has had a rough night after being stranded at Beijing Capital International Airport due to bad weather.

The 59-year-old was on his way back to Shanghai from the Global CEO Council Summit, which was attended by Premier Li Keqiang, in the Chinese capital.

Once back in the office, he briefed his colleagues about the trip, which he made one day earlier. "The summit raised some key issues," he said.

Jiang heads the China operations of the life science and material science company DSM, which has a 113-year history and is based in the Netherlands. This multinational giant specializes in food and dietary supplements, alternative energy, chemical products for paints and bio-based materials. Here Jiang talks about the company's plans in China:

What message did you come back with from the summit regarding the "Made in China 2025" strategy?

China's manufacturing industry is facing overcapacity in several sectors, but there is huge room for future growth in high-end manufacturing. As Premier Li said, there is sure to be growth as long as China heads in the right direction. Even an annual GDP growth rate of 7 percent is feasible.

This was a very important message for the 14 companies at the summit as all of them see China as central to their future development. But the question right now is how to attain 7 percent growth. Exploiting natural resources, and low-cost manufacturing are obsolete.

The Chinese Academy of Social Sciences has made it clear that the nation's high-end manufacturing sector is at least 50 years behind those in developed countries such as Germany, the United States and Japan.

But now is the time for the country to develop its own brands through high-end manufacturing, as the old model of depending on government investment is not sustainable.

When we talk about China's manufacturing industry, we used to define it as "cheap products with acceptable quality". But that time has gone. We now have to move on and create our own products, technologies and global brands. This is probably why the government is encouraging entrepreneurship and innovation in the private sector.

How do you think DSM China will perform in the current market and economic conditions here?

Last year, we had two totally different stories in China. Traditional chemical products did not shape up as expected when it came to sales revenue. But this was due to overcapacity in the industry. Still, we have noticed that quality products are being bought by consumers. There is a big market out there.

Also, another key area revolves around food safety. This is very important to customers these days, so our business has reflected this. In China, this is a sector where there is huge room for growth, and our sales have been very positive.

Of course, there are other market and economic conditions that have helped us thrive. The government has made great efforts in advocating environmental protection. A number of policies, including favorable taxation rates for companies producing such products, have been brought in.

Naturally, over the years, this is an area that the company has excelled in. Environmentally friendly coating materials are becoming very popular in the Chinese market and we will continue investing in this sector.

We also have a department within our company which studies the latest technologies in the industry. For example, we are looking to use 3-D printing in the future. We are also turning our attention to other environmentally friendly sectors such as solar energy and bioscience.

What is the secret of your business success in China?

You have to respect science and innovation. You must also learn to work with people from other nationalities and foreign companies. But most importantly, you must make sure the products you produce are of the highest quality.

That is essential, especially when market demand is sluggish, as it has been for the past few years. During that time, the traditional Chinese chemical products market has been paralyzed by overcapacity. Despite this, DSM's products have sold well even though they are more expensive.

But you can only do that if your products are better - and our products are better. This has increased profit, and allowed us to invest in advanced machines to refine and develop our manufacturing process.

So how do you get along with your local partners?

That is a very good question. To be perfectly honest, this is one of the reasons for our success in China during the past two decades. DSM acquired Aland (Jiangsu) Nutraceutical Co Ltd in November last year to strengthen its position in vitamin C supplements.

When the company is fully integrated, Aland's operations will employ some 1,800 people in DSM China.

The market for vitamin C is extremely large. It is the biggest vitamin by volume in the sector and is used in numerous products. Rather than setting up a plant of our own, it was better to work with another leading company. This will benefit both DSM China and Aland.

In May, we announced plans to set up a joint venture with Zhejiang NHU Co Ltd to specialize in the production and development of a material called PPS (polyphenylene sulfide). PPS is used to make filter fabric for electrical insulation, and is widely used in the automotive and electronics industries.

We are hoping to come up with similar agreements in the future. In this way, we can share resources and gain an advantage in the marketplace. By cooperating we can also avoid wasting time and energy by cutting out repetition.

Is there a strong international flavor to the DSM China team?

Actually, we would like to see more international talent in the company. That means new college graduates as well as experienced overseas experts. About 90 percent of the overseas experts that I know are willing to work for companies in China even after retirement.

These people have great knowledge and would relish the opportunity to work here. They would also help us increase entrepreneurship in the country. I believe we should learn from the United States, and bring together the brightest and the best from all over the world to contribute to the local economy.

What are the challenges you face in the future?

Even as a leading market player, transformation from a traditional chemical company, which had specialized in coal and petrochemicals, to one which focuses on material science and life science, is not easy. To be honest, it is a very painstaking process.

We have been doing this for the past two decades since we acquired Roche (vitamins division) in 2003. It is a relatively easy job to buy or sell a company, but it is quite difficult to change people's mindsets.

So, what we have learned from our experience is to work with other companies. There are a number of European firms that have obtained advanced technologies but have no room to develop them in their home countries. For DSM China, this is a perfect opportunity.

What are your dreams or ambitions in China?

My realization of "the Chinese Dream" is to see more people working in substantial industries. It would also be nice to see people stay their entire life with just one industry because they love what they do.

What is your business philosophy?

Love your job and believe you can be the best in your industry.

shijing@chinadaily.com.cn

(China Daily European Weekly 07/10/2015 page22)