Biotech powerhouse

Environmentally friendly solutions to enhance food safety and efficiency are at the core of Novozymes innovation

A WHOLLY-OWNED subsidiary of Novozymes A/S and one of the largest Danish enterprises in the mainland, Novozymes China produces industrial enzymes, microorganisms and biopharmaceutical ingredients. It owns about 47% market share of global industrial enzymes and holds close to 7,000 granted or pending patents. Enzymes in particular are sourced from nature and optimised for use by developed and emerging industries including food and beverage. Company vice president Michael Brennan talks further about the operations in China.

How would you describe Novozymes’ current business status in China?

China holds an important role and status in Novozymes’ globalisation strategy and it has become Novozymes’ second-largest business growth engine. In 2012, Novozymes’ sales in the Asia-Pacific region amounted to $400 million which is approximately 20% of our global revenue. Since we first started up in China in 1992, Novozymes has built its regional headquarters and an R&D centre in Beijing. On top of that, we have four production facilities, one business innovation & development centre, two sales and technical support branches, and that totals more than 1,100 employees, including around 200 scientists working in R&D.

Food & beverage is Novozymes’ second-largest industry. It accounted for 28% of sales in 2012, increasing by 5%. We truly believe that our solutions benefit Chinese consumers, and while we pride ourselves on making quality products, we’re also committed to developing more environmentally friendly solutions and contributing to the sustainable development of the region.

In your opinion, what changes have Chinese food and beverage companies undergone in the past 15 years?

It’s been some fast-moving 15 years for the Chinese food and beverage industry. Food producers have made huge efforts to drive technological advancement and upgrade the industry. There’s increasing awareness about food safety from both the production and the consumption side, and policies and regulations continue to tighten. The Food Safety Law which was approved by China’s top legislative institution in 2009 provides a legal basis for the government to strengthen food safety. The law will enhance supervision, improve safety standards, and help identify recalls of substandard products. The growing awareness of social issues along with the continuous focus on new laws and regulations mark a change for the Chinese food and beverage industry.

At Novozymes we are very pleased to see that Chinese consumers are increasingly choosing natural, environmentally friendly and healthful food, something that enzymes can help bring forward. For instance, our lactase helps lactose-intolerant consumers enjoy dairy products. And Novamyl can prolong the shelf life of bread and keep it soft and elastic for longer while cutting down unit cost for producers, and at the same time reduce waste and pollution. Our asparaginases reduce the formation of acrylamide that can be found in some food products which are baked, fried or toasted, thereby addressing an important health concern. There are many ways our enzymes improve healthfulness and help protect the environment – and we’re proud to be able to provide solutions that benefit consumers, the society and the environment.

What has changed for Novozymes China since it was established and how does it cope with these changes?

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