Bayer plans further expansion in Asia

Bayer plans further expansion in Asia

12:02 AM, 16th November 2011
Bayer plans further expansion in Asia
Dr Marijn Dekkers, Chairman, Management Board, Bayer.

SHANGHAI, CHINA/LEVERKUSEN, GERMANY: Bayer Group plans to further expand its production, distribution network and research activities in Asia and considerably increase its sales in the region in coming years. “We aim to achieve a more than 60 per cent increase in sales in Asia by 2015,” said Dr Marijn Dekkers, Chairman, Management Board, Bayer at Bayer’s international press conference “Perspective on Growth in Asia,” held in Shanghai, China. This would mean annual sales of well over €11 billion by 2015.

Dekkers also inaugurated a new production facility for TDI, a raw material for the production of flexible foams, at the Bayer integrated site Shanghai. The planned capacity of the plant is 250,000 tonne per year. In addition, the new technology cuts investment costs for large-scale plants by around 20 per cent.

Dekkers said that Asia accounted for some 20 per cent of sales. “We have made capital expenditures of €3.4 billion in Asia over the past 10 years, creating a basis for outperforming market growth in this region,” said Dekkers.

Dekkers said the change processes resulting from global megatrends are especially rapid and fundamental in emerging markets. The megatrends are greatly increasing demand for health care, enhanced agriculture crops and new materials due to focus on energy and climate change. This has led to increased demand for Bayer Healthcare, Bayer CropScience and Bayer MaterialScience products.

To meet its targets, Bayer intends to improve availability of its products in Asia. Bayer will continue to expand its distribution network to serve sub centres and rural areas as well. The company is focusing on collaborations with leading institutes and centres of expertise, as well as its own activities.

Also the company plans to increase the number of employees in Asia from 23,700 in 2010 to more than 30,000 by 2015. Capital expenditures of some €1.8 billion are also planned during this period.

Bayer plans to spend a further €1 billion to expand its MDI capacity to 1 million tonne per year, increase its polycarbonate capacity to 500,000 tonne annually and build a new HDI line that will raise annual capacity by 50,000 tonne.

© WOC News



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