Acquisition Strengthens DSM’s and Haixing’s Hydrocolloids


DSM and Zhejiang Haixing Investment Co. Ltd acquired a majority equity stake in Inner Mongolia Rainbow Biotechnology Co. Ltd to expand sustainable and innovative hydrocolloid solutions, which can be applied in food, beverage and personal care products to provide texture and stability.

The company was renamed to DSM Rainbow (Inner Mongolia) Biotechnology Co., Ltd.

Rainbow’s shares will be divided three ways:

  1. DSM will own 65%
  2. Haixing will own 27%
  3. Gu Li Quan, the founder of the company will own the remainder

“This is an important strategic investment, which expands both our manufacturing capacity and innovation competences, enabling us to deliver on our strategy to become a leading and fast-growing global natural hydrocolloids producer,” said Jiang Weiming, Ph.D., president, DSM China. “DSM Rainbow is uniquely positioned to be a leading producer of high-quality gums, offering sustainable products, which are in high demand by our customers, both in China and throughout the world.”

“Globally, increasing consumer awareness around healthy eating and demand for low-calorie and low-fat food products, coupled with further technological development in the food industry, is expected to have a notable impact on the natural hydrocolloid market growth,” added Xiangwei Gong, president of DSM Hydrocolloids. “By acquiring Rainbow, we will be even better positioned to deliver unique, high-value solutions to our food, beverage and personal care customers worldwide.”

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