Firmenich, a privately-owned fragrance and taste company, announces that it has increased its equity stake in strategic partner ArtSci Biology Technologies (Hangzhou) ("ArtSci"), moving to majority ownership, subject to registration by local authorities. According to the press note, this move will further strengthen Firmenich's ability to serve the rapidly growing Chinese local market and extend its geographic reach across China. ArtSci and Firmenich have been strategic partners since 2019, when Firmenich took a minority equity stake. ArtSci will continue to operate as normal, with its management team remaining in place and fully committed to serving ArtSci customers.
Gilbert Ghostine, chief executive officer, Firmenich, said, "Firmenich is committed to investing and growing in China following our decades' long commitment to this key market. I am delighted to announce that we have moved to majority ownership of ArtSci in our established strategic partnership, which will open up new avenues of growth as we continue to combine ArtSci's intimate understanding of Chinese customers, geographic reach and agility with Firmenich's innovation capabilities, consumer insights, and unparalleled product quality."
Paul Andersson, president, Firmenich, said, "We are proud of the achievements of our strategic partnership with ArtSci, which combines their local expertise and agile business model with our industry-leading technology, creation, and manufacturing.ArtSci is a dynamic and entrepreneurial company, and we are excited to move to the next phase of our partnership to serve the rapidly growing Chinese market better."
"Firmenich is a highly valued strategic partner, and we look forward to the next step in our journey, as we continue to work with them and combine our passion for innovation and customer service to meet the evolving needs of consumers in China," said Wang Ying, chairman, ArtSci.
China is a key strategic market for Firmenich, with compelling structural dynamics that will drive future growth opportunities for the Group. Firmenich has been investing consistently for more than 30 years to expand its footprint and capabilities in China. Recent investments include Firmenich's largest flavor manufacturing plant globally, which opened in Zhangjiagang in 2019. The company's first sensorial co-creation center in Guangzhou, opened in 2021, to respond with agility to local customers demands tailored fragrance and health-conscious taste solutions. Firmenich has a nationwide presence of commercial facilities, with application laboratories in Shanghai, Beijing, and Guangzhou, manufacturing facilities in Shanghai, Kunming, and Zhangjiagang, and a major research center in Shanghai.