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By Samuel Shen SHANGHAI, Jan 9 (Reuters) - Dutch chemicals group DSM NV (DSMN.AS: Quote, Profile, Research) plans to boost its annual China sales by 67 percent to $1.5 billion in three years, making the country its second-biggest market after Europe, its China vice president, Jiang Weiming, said on Wednesday.
DSM also aims to expand its China workforce by half to 6,000 people by 2010, when China will account for more than 10 percent of DSM's global sales, which are expected to reach $13.27 billion. That compares with about 7,000 employees which DSM currently has in the Netherlands. DSM will grow through acquisitions in China, Jiang said in an interview, adding that he expects Beijing soon to give DSM approval for its planned purchase of a stake in North China Pharmaceutical Co (600812.SS: Quote, Profile, Research) and its parent. "Emerging economies such as China, Russia and Brazil will be the main driver of our business," Jiang said. "China is the focus." DSM and rivals such as BASF AG (BASF.DE: Quote, Profile, Research) are stepping up investment in China, where rising consumption of cars, furnishings and electronics are boosting demand for chemicals. BASF already has substantial operations in China, which it expects to generate 10 percent of its global chemicals earnings by 2010. DSM, which is converting itself from a traditional chemical company to into a life- and material-sciences company, has set up an R&D centre in Shanghai, and last month invested 20 million euros in a factory in China. Jiang said the company's sales had been growing more than 10 percent each year in China, compared with about 6 percent globally. DSM and North China Pharmaceutical Group signed a preliminary agreement three years ago under which the Dutch company would buy 25 percent of the group and a 7.64 percent stake in its listed unit and the two sides would set up joint ventures to make vitamins and antibiotics. But the deal has still not received Chinese regulatory approval. "The pharmaceutical industry is very important in China, so the government needs a lot of auditing and checking," Jiang said. (Editing by Andrew Torchia and Quentin Bryar)
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