ST. LOUIS, April 3 /PRNewswire-FirstCall/ -- Sigma-Aldrich Corporation announced today that it has expanded its presence in the People’s Republic of China (PRC) to better and more directly serve customers throughout the country and establish a Company-owned base for future growth. The Company has established a Wholly Foreign Owned Enterprise (WFOE), Sigma- Aldrich (Shanghai) Trading Co.; acquired Beijing Superior Chemicals and Instruments Company Ltd., its primary distributor in the PRC; increased the size of its administrative offices in Shanghai to accommodate the expanded organization; and opened a leased transit warehouse in the PuDong area of Shanghai.
“We’re excited about the potential the combination of these four steps provides to help accelerate the success of our customers in the People’s Republic,” said Eric Green, Vice President of International Sales & Operations. “We’ve enjoyed spectacular growth since opening our representative office in Shanghai in 2002, including growth of 46% in 2005 alone. Our ability to now provide sales, marketing and distribution capabilities locally holds great promise for continuing that rapid growth for years to come. The PRC is a key component in our strategy to grow international sales from 20% to 25% of total global sales within the next five years.”
The retention of all 78 employees of Beijing Superior -- established in 1998 to supply research products direct to end user customers across the PRC from its three locations in Shanghai, Beijing and Guangzhou -- will increase Sigma-Aldrich’s employee base in China nearly tenfold to 87 employees. Because 75% of Beijing Superior’s annual revenues of roughly $22 million have been of Sigma-Aldrich products, the acquisition will not have a material immediate impact on the Company’s PRC sales. The acquisition is expected to help the Company meet its growth goals over the next several years and to be neutral to mildly accretive to earnings in 2006, with no initial charges. Terms of the purchase, which were not disclosed, were paid in cash.
Commenting further on the acquisition, Eric Green said: “We’re delighted with the job that Wilson Wang, our country manager for Greater China, and his team have done to pave the way for these exciting new developments for our Company. We’re particularly pleased with how well they have prepared to welcome Ms. Huang Qili and her colleagues from Beijing Superior to our organization. And we have great hopes and expectations for what our commitment of resources and their shared passion for exceptional service to customers will contribute to our growth in the decades to come.”
About Sigma-Aldrich: Sigma-Aldrich is a leading Life Science and High Technology company. Our biochemical and organic chemical products and kits are used in scientific and genomic research, biotechnology, pharmaceutical development, the diagnosis of disease and as key components in pharmaceutical and other high technology manufacturing. We have customers in life science companies, university and government institutions, hospitals and in industry. Over one million scientists and technologists use our products. Sigma-Aldrich operates in 35 countries and has over 6,800 employees providing excellent service worldwide. We are committed to accelerating Customers’ success through leadership in Life Science, High Technology and Service. For more information about Sigma-Aldrich, please visit our award-winning web site at http://www.sigma-aldrich.com .
Cautionary Statement: This release contains forward-looking statements relating to future performance, goals, strategic actions and initiatives and similar intentions and beliefs. These statements involve assumptions regarding Company operations, investments and acquisitions and conditions in the markets the Company serves. Although the Company believes its expectations are based on reasonable assumptions, such statements are subject to risks and uncertainties, including, among others, certain economic, political and technological factors. Actual results could differ materially from those stated or implied in this news release, due to, but not limited to, such factors as (1) changes in pricing and the competitive environment, (2) fluctuations in foreign currency exchange rates, (3) the impact of acquisitions and success in integrating and obtaining projected results from the acquisitions, (4) changes in research funding, (5) other changes in the business environment in which the Company operates, (6) government regulations applicable to the business and (7) the ability to retain customers, suppliers and employees. The Company does not undertake any obligation to update these forward-looking statements.
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CONTACT: Kirk A. Richter, Treasurer, of Sigma-Aldrich Corporation,+1-314-286-8004
Web site: http://www.sigma-aldrich.com/
