Chongqing - Ten years ago, German industrial gas company Messer faced a tough choice in China: withdraw investment or start from scratch in a challenging market. Today, the decision to stay and invest has paid off, as Messer’s Chongqing branch now stands as a model of growth and success.
Staff at Chongqing Messer inspect product equipment. (Photo provided by interviewee)
Since launching its first production unit, Chongqing Messer Gas Products Co., Ltd. (Chongqing Messer) has increased its capacity sevenfold with an impressive compound annual growth rate of over 20%. This feat, which usually takes at least 12 years in the industry, was accomplished in just eight.
What led to this success? "Confidence is as valuable as gold," says Lyu Bin, General Manager of Chongqing Messer. For Lyu, confidence in China’s long-term economic growth was the foundation of their decision to establish operations in Chongqing’s Changshou Economic and Technological Development Zone in 2011 and to continue investing despite initial setbacks. Today, that confidence has undeniably paid off.
A bold decision to stay in Changshou
Founded in 1898, Messer is the world’s largest privately owned industrial gas company, headquartered in Germany with cutting-edge R&D facilities. In 2010, the Changshou Economic and Technological Development Zone was upgraded to a national-level economic zone. Shortly afterward, a major customer of Messer planned to relocate to Changshou, prompting Messer to set up a plant nearby for better service. However, as Chongqing Messer began construction in 2012, this client ultimately did not establish itself in Changshou, leaving Messer with a critical choice.
In 2012, while some remained wary of investing in China due to the global financial crisis and a slowing Chinese economy, Messer’s management saw potential. Following extensive research, they decided to remain committed to Changshou, trusting in China’s path toward economic transformation and high-quality growth.
Lyu even made a personal wager with economic experts, betting on the positive future of China’s economy.
From zero to over 300 customers
Chongqing Messer’s early days were tough, starting with no customers until 2015, when the first client, another German company, joined the industrial park. Through collaboration with Changshou Economic and Technological Development Zone, Chongqing Messer established a 45-kilometer gas pipeline network for the industrial park. This system enhanced resource efficiency and reduced costs for park enterprises by around 30%.
The pipeline also ensured stable gas supplies and minimized safety risks, significantly contributing to the industrial park’s sustainability. Supported by the Changshou Economic and Technological Development Zone, Chongqing Messer rapidly expanded its client base. Today, it supplies over 300 clients in the Chongqing region, with an annual output value of 500 million yuan, establishing itself as Chongqing's largest industrial gas supplier.
Messer’s success has bolstered the development of Changshou Economic and Technological Development Zone, which now hosts over 900 companies and has achieved an output value of 130 billion yuan by the end of 2023.
Innovation and sustainability as future goals
Chongqing Messer is now working towards setting industry standards by embracing automation and sustainability. The 150-mu (about 10 hectares) plant operates with minimal staffing, thanks to automated systems managed by ten monitoring staff in the control room. Inspired by unmanned factories in Messer’s German and Spanish plants, Chongqing Messer is introducing smart technology to automate its facility fully.
Additionally, the company is preparing to produce specialty gases essential for electronics manufacturing, aiming to reduce China’s dependency on imports. This “crown jewel” of industrial gases will support China’s chip production and device packaging industries.
Confident in China’s ongoing economic growth, Lyu Bin envisions Chongqing Messer’s revenue doubling to over 1 billion yuan by 2027, with plans to invest an additional 1 billion yuan over the next decade.
(Yang Yongqin, a reporter from Chongqing Daily, contributed the Chinese version of this report.)