OREANDA-NEWS. September 08, 2011. Sinochem Group and Royal DSM, the global Life Sciences and Materials Sciences Company, completed the transaction delivery to establish the 50/50 global anti-infectives joint venture at Hong Kong. Mr. Pan Zhengyi, Vice President of Sinochem Group, and Mr. Stefan Doboczky, Member of the Managing Board of Royal DSM, and Dr. Jiang Weiming, Vice President of DSM and President of DSM China, attended the signing ceremony for the transaction delivery, reported the press-centre of Sinochem.

As part of the agreement to form the joint venture, Sinochem Group has taken a 50% equity interest in the business group for a total cash consideration of EUR 210 million on a cash and debt-free basis with 1 January 2011 as effective date. All applicable regulatory approvals and customary clearances from competition authorities have been received.

According to the delivery agreement, the joint venture—to be named DSM Sinochem Pharmaceuticals Limited, will be headquartered in Hong Kong. The board of DSM Sinochem Pharmaceuticals Limited shall have six members of whom three will represent DSM and three Sinochem.

Mr. Pan Zengyi, Vice President of Sinochem Group said: “The establishment of DSM Sinochem Pharmaceuticals Limitedwill accelerate the application of its innovative biotechnology knowledge to improve and transform its business, so as to consolidate and enhance its global leading position in the field of anti-infectives. At the same time, we are confident that this is a very positive step for Sinochem and DSM in their respective ambition to apply biotechnology broadly, to help the advancement of human health with environmentally sustainable processes.”

Stefan Doboczky, Member of the Managing Board of Royal DSM, and CEO of the DSM Sinochem Pharmaceuticals Limited commented: “The establishment of this joint venture with Sinochem is fully in line with DSM’s stated strategy for its Pharma cluster: creating value via partnerships, but also further strengthens DSM’s position in China. The combination of DSM's strong global market position in anti-infectives and Sinochem's significant global market capability, presents exciting future growth opportunities through combined technologies and access to customers, especially in the fast growing Asian economies.”