A German company that makes chemicals used in areas like construction and food processing has opened an office here to exploit opportunities in the region.

Munzing’s facility at the German Centre in Jurong’s International Business Park is its first in Singapore and will serve as the company’s Asia-Pacific headquarters.

It will house five people working on supply chain management, customer relations, and research and development (R&D) by the end of January, but that headcount is expected to nearly double later in 2025, with new hires planned for sales, R&D, and customer service roles.

The company has also set up a 500 sq m warehouse near the office to help move its products, which include construction chemicals and food processing additives, across regional markets. It plans to relocate to a 3,000 sq m warehouse by the end of 2025.

Munzing chief executive Michael Munzing told The Straits Times on 15 January that the company, known as a Mittelstand – a German medium-sized company – set up here because of Singapore’s reputation as a global logistics and financial hub.
 

“The availability of a highly skilled workforce, stable legal environment, a focus on innovation and sustainability, as well as Singapore’s geographical location combined with its efficient logistics, will help Munzing develop its business to new levels,” he said. “We will invest in local R&D and application laboratories to support our customers and develop new technologies together to stay competitive, innovative, and sustainable.”

Headquartered in Abstatt, Germany, Munzing has a presence in more than 40 countries, including production sites in Malaysia and Australia, as well as sales offices in China, South Korea, and India.

The company’s entry into Singapore comes amid heightened investment activity within the local chemicals sector, which accounted for the largest share of the country’s total fixed asset investment commitments in 2023, totalling S$4.5 billion for the financial year.

The Republic’s energy and chemicals sector contributes 3 per cent to gross domestic product, and is the second-largest contributor to manufacturing output.
 

Mr Dino Tan, head of Europe at the Economic Development Board (EDB), noted that Munzing’s presence will contribute to the growth and innovation capabilities of Singapore’s chemicals sector.

“EDB looks forward to seeing Munzing enhance its regional footprint and build new partnerships, and we welcome more like-minded German Mittelstand companies to access growth opportunities in the region from Singapore,” he said.

A report from the Singaporean-German Chamber of Industry and Commerce (SGC) noted on 15 January that Singapore’s streamlined regulatory framework, digitalisation, and efficient public administration exemplify a business environment designed for growth and innovation.

Investments from leading German companies in Singapore create stronger links between the two countries, more value for the industry and a “multiplier effect on the economy” with the addition of new jobs and expansion of technology fields, said the report.

EDB managing director Jacqueline Poh noted that Singapore hosts 2,300 German businesses, adding: “We encourage German businesses to collaborate more closely with our local enterprises and R&D players, who can be their partners in co-innovation and expansion across Asia.”
 

Source: The Straits Times ©️ SPH Media Limited. Permission required for reproduction.