Historically, Novozymes has experienced constant price pressure in its markets. Competition from producers based in low-cost countries, particularly China and India, will always be a challenge. One of the ways in which the Group is trying to counter this challenge is by using its technology to optimize production, thereby reducing costs per unit produced so that production remains leading edge and competitive.
To maintain optimal production Novozymes is dependent, among other things, on reliability of deliveries from suppliers and, to safeguard this, cooperation agreements have been entered into with a number of key suppliers. These cooperation agreements also help to reduce the sensitivity to fluctuations in the price of raw materials and energy to which Novozymes is subject.
Novozymes’ technology is the basis of its business, and the Group pursues an active patent strategy by protecting new discoveries as early as possible in order to prevent its products, processes, etc., from being infringed.