January 16, 2019
DSM and New Hope Liuhe Group sign strategic cooperation agreement
Royal DSM and New Hope Liuhe Group have signed a strategic cooperation agreement on December 20, 2018.
The signing ceremony, held at the headquarters of New Hope Liuhe Group in Beijing, was presided over by Mr. Wang Jianmin, general manager of Feed Supply Chain Management Department of New Hope Liuhe and Ms. Liu Chang, chairwoman of New Hope Liuhe. Ms. Liu addressed the current changing market and changes in terminal consumption in her welcome speech.
"In the past 36 years, New Hope has developed the industrialisation of feed agriculture with the aim to provide more protein. As the current market is undergoing drastic changes, we will need increased flexibility from the front-end supply chain," Ms. Liu said. "Our growth used to rely on the economies of scale. However, to meet the needs of the ever-changing market, our company is undergoing strategic transformation through initiatives such as setting up business units for the feed and poultry sector, as well as integrating the swine industry management system with the food department. We do these in the hope of further enhancing our professional management and core capabilities for sustainable development. We will progress fast by taking small steps to adjust our strategy accordingly. Also, we will adapt to market changes through even more professional operations."
In addition, Ms. Liu said that it is the long-standing mission of New Hope to find a trustworthy global partner to work with for the long term, such as DSM.
At the signing ceremony, Mr. Enzo Trimigliozzi, Vice President Strategy for Animal Nutrition and Health, also briefly introduced the history and development of DSM's businesses over the past 116 years, as well as the company's collaboration models with different customer groups in China and overseas. He also mentioned that as a global science-based company that emphasises customer centricity, DSM is undergoing transformation with new cooperation proposals established with its strategic partners. These collaborations adhere to DSM's commitment to encourage sustainable farm management practices across the value chain. "At DSM, we are creating brighter lives for all through brighter living solutions that enable business development with reduced environmental impacts as well as minimum carbon emission while tackling societal challenge of antimicrobials and more. Therefore, we look forward to having more in-depth collaboration with New Hope Group," Mr. Trimigliozzi said.
Mr. Justin Wang, Vice President Animal Nutrition and Health for China at DSM, highlighted that New Hope Liuhe and DSM have been cooperating on a global scale for many years. "With the development of our respective businesses and the shared mutual trust, our level of collaboration has increased steadily. Our two companies are strategically aligned and acting in parallel. It is expected that the cooperation between the two parties will expand from merely selling products to offering integrated solutions to China and globally. More importantly, the cooperation can also be extended from business to corporate governance and joint innovations. We believe a strategic cooperation like this can promote the sustainable development of the two companies."
After the signing ceremony, the participants conducted discussions on the direction of the cooperation based on the agreed framework so as to lay a strong foundation for the future action plan.