On October 11, 2001, International Flavors & Fragrances celebrated the grand opening of its Technical and Creative Center in Shanghai, China.

Hosted by Richard A. Goldstein, Chairman and CEO, the event lifted the curtain on a new 2,600-square-meter facility, which includes offices, laboratories, and a consumer research center. Home base to approximately 60 professional employees involved in the creation, application, and evaluation of flavors and fragrances, the new center represents a $1 million investment for the Company. It is also the new headquarters for IFF's Greater China operations, serving as the base of technical, creative, management, sales, and marketing support for the area.

But beyond its physical structure, China's new Technical and Creative Center brings to life an important strategy for IFF as stated by the Chairman: "To be wherever our customers need and want us to be."

"Our customers' businesses are growing in the Greater China region," Goldstein explained. "They want us to leverage our global resources and insights and apply them in a way that makes sense in this part of the world.

"This new center will give our employees and customers unprecedented access to world-class equipment, applications, and technology. That's good for our co-workers, good for our Company as a whole, and good for the rapidly developing business community in Shanghai and throughout the Greater China region," he remarked.

The opening of Shanghai's Technical and Creative Center brings IFF's total investment in China to $54 million. The Company employs more than 400 people in this land of expanding opportunities. Long a trailblazer in the region, IFF boasts a 20-year history in China, which began when it established its first office in Guangzhou in 1981. In 1991, IFF marked another significant milestone when it established the industry's first and only "Wholly-Foreign-Owned" flavor and fragrance facility in the Guangzhou Economic Zone.

During a tour of the new Technical and Creative Center, perfumer Jane Fung gives visitors an overview of the kinds of fragrances IFF will be developing at the facility.

For Matt Rouse, IFF General Manager—Greater China, the opening of the new Shanghai facility heralds a new and better way of doing business in the region. In line with the concept of "One IFF," it brings all essential elements under one roof, enhancing possibilities for clients and co-workers alike.

"The new center allows us to bring management, commercial, creative, and application resources together for the first time in China," Rouse explained. "Previously, we had production in Hong Kong and Guangzhou, fragrance labs in Shanghai, flavor labs in Guangzhou, and management in Hong Kong."

Adding that production will remain in Guangzhou, Rouse noted that the facility's new Consumer Insight Center provides the potential for more exciting prospects. The increased regional capabilities—combined with the benefits of having various disciplines and product lines under one roof—are especially promising for IFF and its customers, he remarked.

"This center allows us to be that much closer to the customer, respond more quickly to new opportunities, and allocate the right resources in a much more efficient way," Rouse said. "Another great aspect of the center is that it gives us the ability to bring customers in to work with us in the flavor and fragrance labs. They can participate in evaluations and generally join in the selection process."

Amid a blaze of local color, IFF officers open the Shanghai Technical and Creative Center. From left to right, Robert Burns, Vice President & Regional Manager—Asia Pacific, Wayne Howard, Executive Vice President of Global Operations, Richard A. Goldstein, Chairman and Chief Executive Officer, and Matt Rouse, General Manager—Greater China, ceremonially cut the ribbon on new flavor and fragrance possibilities for a growing market.

While the Shanghai staff collaborates on many projects with the Regional Technical and Creative Center in Singapore, the new facility enables IFF to better focus on China-specific needs. Some of the more exciting and interesting fragrance projects are the result of needs identified through Consumer Insights' research with local consumers, such as improving the functionality of hair care and personal wash products.

IFF's Commitment to China

1981:	IFF establishes its first office in Guangzhou
1986:	IFF establishes a location in Beijing
1990:	IFF opens an office in Shanghai
1991:	IFF establishes the industry's first and only major "Wholly-Foreign-Owned" flavor and fragrance facility in the Guangzhou Economic Zone
1993:	IFF establishes a joint venture aroma chemical operation in Xinanjiang, now Hangzhou
2001:	IFF opens China Technical and Creative Center

On the flavor side, the Shanghai Center's efforts cover all the major end-use categories in China, with particular emphasis on oral care, confectionery, and beverages (both carbonated and non-carbonated). Another major effort involves identifying for the China market the most consumer-preferred tools within IFF that can be supplied quickly and efficiently to very important smaller local customers and distributors.

However, according to Rouse, IFF's greatest challenge in China, both from a flavor and fragrance perspective, involves finding ways to deliver superior quality at the lowest possible prices.

"The size of the consumer market is directly proportional to the retail price of a product, so customers scramble to find value, squeeze out costs, and establish a point of difference Chinese consumers will appreciate. This is as equally true for the local companies as for the multi-nationals," he explained.

The new Shanghai Technical and Creative Center will bolster IFF's efforts in meeting this challenge. A coordinated and carefully planned effort advanced the center from drawing board to completion and members of the project team worked many long hours to ensure the center's successful completion.

With all in place, the time is right for IFF to transform the Shanghai Center's promise into a profitable reality. The Chairman is looking forward to the results.

"IFF's decision to build this facility is bold testimony to our long-term confidence and commitment to Shanghai and the entire region," Goldstein said. "Our recent performance has been very strong here, and we're bullish about our future prospects."

Members of IFF's leadership team hear first hand about the center's savory lab from technologists Tim Ding and Kelvin Hu.