As one of the world's leading specialty chemical companies, Degussa has built its sustainable development strategy around innovation and research. The company focuses on creating competitive advantages within a knowledge-driven value chain, continuously seeking breakthroughs in technology and application. With over 55,000 patents globally and more than 3,100 employees operating across 50 locations, Degussa remains committed to maintaining and expanding its technological leadership through continuous innovation.
Linde Dein, Chairman of Degussa (China) Investment Co., Ltd., recently emphasized that the company's R&D projects are carefully balanced, with short-term, mid-term, and long-term goals all playing an essential role. He explained that managing a diverse portfolio of projects is crucial for effective R&D execution. Unsuccessful projects are quickly terminated, and Degussa avoids investing in high-potential but unproven ventures. This approach ensures that resources are allocated efficiently and strategically.
Dein also highlighted the importance of accepting failure as part of the innovation process. He noted that if no projects fail, it may indicate a lack of ambition or creativity. To encourage bold ideas, 10% of Degussa’s annual R&D budget is dedicated to high-risk projects, which are monitored closely and discontinued when necessary.
The company is organized into 21 business units covering areas such as chemical building materials, fine and industrial chemicals, functional materials, coatings, and specialty polymers. Approximately 85–90% of its R&D activities focus on basic research, conducted within each business unit, while the remaining 10–15% is managed by an independent entity called "Creavis." To ensure collaboration between Creavis and other departments, dedicated staff are assigned to coordinate and maintain communication.
According to Dein, Degussa’s strength lies in its ability to deliver customized, high-efficiency solutions to customers in over 100 countries. This capability has helped more than 85% of its products maintain a leading position in global markets. Looking ahead, the company plans to increase R&D investment from 3.2% to 4% of sales, raising annual R&D funds from 350 million to 450 million euros.
Degussa places great value on the creativity and responsibility of its R&D teams, believing that these qualities drive innovation and help integrate new ideas into both R&D and production processes. The company fosters an innovation culture through internal rewards, recognizing project teams that contribute significantly to competitiveness. Notably, innovative projects from 2003 helped strengthen Degussa’s market dominance.
The company has also invested heavily in R&D centers worldwide, including one in Shanghai, established in April 2004 with a total investment of 12 million euros. This facility includes modern laboratories, applied technology research rooms, and after-sales service departments, enhancing Degussa’s ability to serve Chinese clients with innovative solutions.
In June of this year, Degussa partnered with Jilin University to establish an 80:20 joint venture. The university will provide technical expertise, becoming a long-term R&D partner. This collaboration marks a strategic partnership in the high-temperature polymer field, aiming for mutual growth.
Dein also encouraged Chinese companies to invest more in R&D and protect their intellectual property. While some foreign firms find it challenging to operate in China due to IP protection issues, he expressed optimism about the government’s efforts to improve the environment for innovation. With these initiatives, Degussa aims to fully integrate China into its global R&D network, making technological innovation a cornerstone of its operations in the region.
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