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Story of Investing in Dongguan Messer: Upgrading Dongguan’s Industrial Chain

date:2023-12-19 16:30:24 source:Dongguan+
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In the newly constructed factory of Dongguan MS Messer Gas Co., Ltd., located on Lisha Island in Shatian Town, Dongguan, workers are busy installing production equipment, preparing for the official start of the project. This project is the largest air separation project ever built by the German century-old company Messer Group.

Since the opening of the Nansha Bridge, enterprisies in Shatian Town of Dongguan, to the eastern endpoint of the bridge, have seen more possibilities for future development. In April 2023, Messer Group, one of the world’s largest industrial gas companies, began trial production for a world-class standalone all-liquid air separation project invested and constructed in Shatian.

General Manager Hu Ting of Dongguan MS Messer told reporters that among all the projects invested by Messer globally, the equipment in the Dongguan project is the most advanced. A single unit can achieve a daily production of up to 1200 tons, making it the world’s largest in terms of production capacity among similar equipment.

“During the project’s implementation, the government leadership in Dongguan has been very pragmatic and efficient. In our words, they are very down-to-earth. This has also strengthened our unwavering commitment to invest in Dongguan,” said Hu Ting. “Up to now, we still believe that our investment in Dongguan is a very correct decision. We hope to grow along with Dongguan's development as a company.”

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Driving the landing of the world’s largest all-liquid air separation project in Dongguan

As a top manufacturer in Germany, Messer was founded in 1898 and was selected as a “World Brand” in Germany in 2008. Messer came to China in 1994 and entered Guangdong in 1996. It has since invested in and constructed world-class large-scale liquid air separation production bases and specialty gas research and development centers in Chancheng, Shunde, Sanshui, Dongguan, and Yangjiang respectively. Each company has multiple sets of production facilities, serving as a gas manufacturer integrating production, sales, and logistics.

The five factories in Guangdong provide high-quality gases such as oxygen, nitrogen, argon, helium, neon, krypton, xenon, hydrogen, standard gases, electronic gases, and medical gases to various regions in China. They are committed to offering the most competitive gas solutions for innovation and high-end manufacturing in the Guangdong-Hong Kong-Macao Greater Bay Area.

Established in 2018, Dongguan MS Messer is a significant production base for Messer in Guangdong. Located in Lisha Island Fine Chemical Industrial Park in Shatian Town, Dongguan, one of the three major high-end chemical zones in Guangdong province, it is positioned in the middle of the Guangzhou-Shenzhen Science and Technology Innovation Corridor. This is also the largest all-liquid air separation project constructed by Messer Group to date.

Why was such an important project placed in Dongguan? It should be traced back to the year 2016.

“In 2016, the leaders of Dongguan invited the CEO of Messer Group and the team to visit Dongguan. At that time, the global trade situation was complex and ever-changing, and the leaders of Dongguan were under various pressures. They very pragmatically introduced us to the industrial situation in Dongguan,” recalled Hu Ting.

As a major hub for foreign investment and trade, Dongguan has always been a sample for observing the Chinese economy. Since the opening-up policy, Dongguan has been a favored land for foreign investment. As a vivid reflection of an open China, Dongguan’s economic and trade cooperation network spans over 200 countries and regions globally, with more than 12,000 foreign-funded enterprises. This extensive foundation for attracting foreign investment is the primary reason why Messer decided to invest in Dongguan.

In 2018, the relationship between Dongguan and Messer bore fruit. After numerous rounds of inspections, Messer Group decided to establish Dongguan MS Messer Gas Co., Ltd. on Lisha Island in Dongguan.

“During the implementation of the project, the government leadership in Dongguan has been very pragmatic and efficient. They promptly find solutions for any issues that arise. In our words, they are very down-to-earth. This has left the greatest impression on our team and further strengthens our unwavering commitment to invest in Dongguan,” said Hu Ting.

In 2020, Dongguan Messer successfully completed the land bidding and auction process. In May 2020, Messer Group initiated the construction of a world-class standalone all-liquid air separation project in Shatian.

Messer’s investment in Dongguan is closely tied to the stable policies supporting investment and trade in Dongguan. Hu Ting mentioned that, in addition to Dongguan’s unique geographical advantages, the main reason is the strong support from the Dongguan government at the policy level for foreign-funded enterprises. Policies such as Dongguan’s “Ten Measures for Foreign Investment” provide extensive development opportunities for foreign-funded enterprises.

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Strengthening the backbone of Dongguan's industry

What can the largest all-liquid air separation project built by Messer Group globally bring to Dongguan?

Industrial gases, also known as the lifeblood of industry. Opening up the arteries of industrial gases is a crucial link for the incremental growth of high-end manufacturing. One of the characteristics of industrial gases is local production and local sales, providing essential utility services to surrounding customers as a fundamental part of infrastructure.

Dongguan possesses an industrial foundation that many cities envy. In the past decade, the number of industrial market entities in Dongguan has doubled. Additionally, by shifting from an extensive mode to a technology-intensive one, Dongguan is actively promoting a strategic adjustment of its economic structure. This also means that over 200,000 industrial enterprises are embarking on an advanced path. In this process, the support of industrial gases is indispensable.

“The transformation of Dongguan’s processing and manufacturing industry towards high-tech industries relies on the support of industrial gases. For example, the advancement of the electronic information technology industry and the high-end medical industry requires a large quantity of our products,” Hu Ting revealed to reporters. The industrial oxygen, nitrogen, argon, and other products produced by Dongguan Messer are widely used in the production of electronic information and other products.

Hu Ting stated that among all the projects invested by Messer globally, the equipment in the Dongguan project is the most advanced. A single unit can achieve a daily production of up to 1200 tons, making it the world’s largest in terms of production capacity among similar equipment. Using low-temperature cryogenic technology to separate high-purity oxygen, nitrogen, and argon from the air, the production equipment operates 24 hours a day safely, stably, and environmentally friendly through remote operation with a DCS control system.

“The higher the precision of product manufacturing, the higher the purity requirements for industrial gases. The Messer project will play a significant driving role in the vigorous development of new-generation industries such as electronic information in Dongguan.” Hu Ting told reporters with a smile, “because of its immense impact, it is jokingly referred to as a “chain-strengthening” project in the industry.

The Messer project is one of the significant cases where Dongguan has attracted major foreign investment projects to strengthen its existing industries. The entry of Messer into Dongguan holds special significance for experts who have been observing the economic development of Dongguan over the long term. Bai Ming, Deputy Director of the International Market Research Institute at the Research Institute of the Ministry of Commerce, stated that this represents a leap forward in Dongguan’s investment attraction efforts. It helps Dongguan consolidate its advantages in the industrial chain, effectively improves the ecological development of Dongguan’s industries, and enhances the city’s industrial competitiveness.

As a hub of advanced manufacturing, Dongguan has consistently sought new breakthroughs in enhancing the integration of its industrial chain. Attracting foreign investment projects that can enhance the supporting capabilities of existing industries has become one of the crucial initiatives. More and more foreign projects like Messer, capable of strengthening the existing industries in Dongguan, are emerging. These projects are accelerating the formation of a “matrix” for the concentration of high-end industries in Dongguan.

“Innovation is a crucial cornerstone of Messer’s century-long development history. We are committed to bringing more efficient, higher-quality, and superior services in gas products and technology through innovation for our customers. This is to meet the demands of the high-growth market in South China and contribute to the industrial transformation and upgrading in Dongguan and the surrounding areas,” said Hu Ting.

“Dongguan is a city with tremendous potential. Up to now, we still believe that our decision to invest in Dongguan is very correct,” said Hu Ting. “In terms of the collaborative model, Messer and Dongguan complement each other, or you could say it is a mutually beneficial collaboration. We hope to grow together with our business accompanying the growth of Dongguan.”

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Voices from the Investors

“During the project’s implementation, the government leadership in Dongguan has been very pragmatic and efficient. They promptly find solutions for any issues that arise. In our words, they are very down-to-earth. This has left the greatest impression on our team and further strengthens our unwavering commitment to invest in Dongguan.”

“Up to now, we still believe that our investment in Dongguan is a very correct decision. We hope to grow along with Dongguan’s development as a company.”

— General Manager Hu Ting of Dongguan MS Messer

Company Introduction

Messer is one of the world's leading industrial gas companies, primarily producing industrial gases such as nitrogen and argon, as well as specialty gases and medical gases. The Messer Group entered the Chinese market in 1995 and established its headquarters in Shanghai, covering the East, South, and West regions. The total investment in China has exceeded 1.3 billion dollars to date. Dongguan MS Messer Gas Co., Ltd. was established in June 2018. Stable and successful development has made Messer one of the major foreign industrial gas suppliers in China. From acetylene to xenon, Messer is one of the companies with the widest range of product series in the industrial gas industry.


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