A France-headquartered Global Fortune 500 company is leveraging its technical advantages to enhance the new materials industry chain in Dengfeng City, central China's Henan Province, and has expressed optimism about future development due to the city's favorable business environment.
19 years ago, Saint-Gobain, a manufacturer of a wide variety of building materials, established its first factory in Dengfeng, capitalizing on the region's transportation advantages, abundant mineral resources, and numerous upstream industrial enterprises. Today, the factory in Dengfeng is expanding by laying out new facilities and building additional production lines, achieving a total output value of 470 million yuan (approximately 66 million U.S. dollars) last year.
"We have three (factories) in Henan Province, and as always, when we come and when we invest in provinces in China, we feel a strong support from the local authorities and from the government," said Anthony Lopez, Asia-Pacific Communication Director of Saint-Gobain.
Lopez explained that the decision to establish a factory in Dengfeng was influenced by the presence of numerous car manufacturers and electric vehicle manufacturers, which are their primary clients.
"You (Henan) have a lot of car manufacturers and EV car manufacturers, so Saint-Gobain has different companies supplying those EV car-makers. So it's very important for us that we are also close to them when we established a manufacturing site," said Lopez.
Saint-Gobain produces highly wear-resistant abrasive grains from a material called corundum, which is primarily composed of alumina sourced from the local aluminum processing industry in Dengfeng.
The company's continued presence has helped to drive the local new materials industry chain in the city. In 2023, the output value of the new materials industry in Dengfeng exceeded 3 billion yuan (about 421.9 million U.S. dollars).
"Saint-Gobain is very strong on renovation and this is a very important part to become carbon neutral. If China wants to become carbon neutral, they need to renovate the houses and the building to make them more sustainable and for this we offer high performance solutions. So the future of Saint-Gobain in China, I believe, is very bright," Lopez said.