September 16, 2008 Bayer
Bayer HealthCare acquires
German DIREVO Biotech AG
A recognized leader in protein engineering /
Expanding technological know-how in biologicals /
Strengthening Bayer HealthCare's commitment to develop innovative biologicals
Bayer HealthCare AG acquires the German biotech company DIREVO Biotech AG, Cologne. With the acquisition of the biotech company specialized in protein engineering, Bayer strengthens the research competence in biologicals of its pharmaceutical division Bayer Schering Pharma. The industrial biotechnology business of DIREVO Biotech is not subject to the transaction. Closing of the deal of a value of 210 million Euro is projected for end of September 2008.
DIREVO Biotech's unique and proprietary protein engineering platform uses high throughput technologies for the rapid discovery and optimization of biopharmaceuticals. The platform has already been successfully applied to a wide range of proteins, including therapeutic antibodies and proteases that will be added to the preclinical pipeline of Bayer Schering Pharma.
September 16 2008 DIREVO
DIREVO Announces Sale of its Subsidiary DIREVO Industrial Biotechnology GmbH and Series A Financing
DIREVO Biotech AG
announced today the sale of its fully owned subsidiary DIREVO
Industrial Biotechnology GmbH that was incorporated recently for
an undisclosed cash amount to a group of investors. In addition, the new company
completed a EUR 8 million financing in the form of Series A
Preferred Stock. The participating institutions included Bankhaus
Wölbern (Hamburg) and NRW Bank (Düsseldorf) as lead investors,
TVM-Capital (Munich), Danisco A/S (Copenhagen), a Sparkasse KölnBonn (Cologne) affiliated
private equity firm, Signet Healthcare (New York), Mulligan
BioCapital (Hamburg), several private investors, including Nobel
laureate Prof. Dr. Manfred Eigen, and management.
The company focuses on Food & Feed and Biorefinery markets and provides solutions through discovery, development and scale up of enzymes and strains. It develops products both independently and with global leaders such as Danisco/Genencor and Nestlé. For example, a collaboration with Danisco A/S has yielded a significantly improved enzyme which is marketed as part of a Danisco/Genencor product.
DIREVO Industrial Biotechnology GmbH
DIREVO Industrial Biotechnology GmbH was formed as a spin-out from DIREVO's industrial biotechnology business unit and AC Biotec GmbH.
AC Biotec GmbH
In November 2007, DIREVO acquired AC Biotec GmbH, Jülich, Germany, a provider of bioprocess development and contract manufacturing services to the industrial biotechnology and pharmaceutical markets. Established in 2001, AC Biotec offers development, optimization and application of fermentation and downstream processes, using both microbial and plant cell-based systems. This includes the complete scale-up of biotechnological processes, ranging from multi-well plates and shake flasks up to pilot-scale stirred-tank-reactors.
September 12, 2008 Bayer
Bayer MaterialScience expands global production network for polyurethane dispersions Low-VOC raw materials for high-quality, environmentally friendly formulations
Waterborne coating and adhesive raw materials now also from Shanghai
Bayer MaterialScience has
opened a state-of-the-art production plant at the integrated
production site in Shanghai to manufacture polyurethane
dispersions (PUD). The plant has an annual capacity of 20,000
metric tons. Bayer MaterialScience now therefore has facilities
in North America, Europe and Asia for these key raw materials for
manufacturing environmentally friendly, waterborne coating
systems and adhesives.
The production of polyurethane dispersions in Shanghai reflects in two respects the significant increase in environmental awareness that has also recently become evident in China. The products in question form an important basis for manufacturing waterborne and thus low-emission paints, coatings and adhesives for a variety of applications. These include metal, wood and plastic coatings, adhesives for the footwear, furniture and automotive industries, textile and leather coatings and glass fiber sizing. The second ecological aspect concerns the new production facility itself. This sets standards through technology that is not only innovative and robust but also environmentally friendly and energy efficient.
October 17, 2008
Bayer significantly strengthens its presence in China
Startup of 350,000 tons/year MDI train /
Groundbreaking for 250,000 tons/year TDI plant /
Isocyanate production also to be expanded in Europe in the medium term
Bayer MaterialScience has
successfully started production at its new 350,000 tons/year
diphenylmethane diisocyanate (MDI) complex at the Bayer Integrated Site
Shanghai (BISS). The new world-scale plant is the largest MDI
facility of its kind in the world. Furthermore, the company has
ground for a 250,000 tons/year toluene diisocyanate (TDI) plant at BISS which is scheduled to come
on stream in 2010. structures," explained Patrick Thomas.
Other production facilities for the Asian market
Just last month, the company started up its 20,000 tons/year polyurethane dispersions plant, which is the first unit producing waterborne polyurethane coating raw materials in China. Waterborne coating systems use little or no solvent, thereby reducing emissions of volatile organic compounds (VOCs) during application.
The company has also
completed the construction of its second polycarbonate line,
doubling its capacity for the high-tech engineering plastic
Makrolon(R) to 200,000 tons/year. The inauguration of this second
production line will depend on how the market develops.
New TDI production plant planned for integrated site in Dormagen
Bayer MaterialScience also plans to extend its isocyanate production significantly in the Europe, Middle East, Africa (EMEA) region in order to meet rising demand there. A new world-scale plant for TDI with an annual capacity of 300,000 tons is slated for construction at the Dormagen/Uerdingen integrated site in Germany. It will replace the existing TDI plants at the Dormagen and Brunsbuttel sites. MDI production at Brunsbuttel will be expanded to a total capacity of 400,000 tons/year by making use of the existing capacity of 160,000 tons/year and the existing infrastructure, and by converting the present TDI plant to an MDI facility. Given the right business conditions, i.e. political acceptance and the availability of a suitable infrastructure for raw materials and energy, the two projects are scheduled to be completed by 2013 at a total investment cost of about EUR 300 million.
Oct 28, 2008 Reuters
US warns Bayer over aspirins containing supplements
Bayer AG aspirin products that contain dietary supplements have not been proven to
work and are
U.S. health regulators warned on Tuesday.
Claims made about the products, Bayer Aspirin with Heart Advantage and Bayer Women's Low Dose Aspirin + Calcium, also mislead consumers, the U.S. Food and Drug Administration said.
Bayer builds new chlorine
recycling plant for TDI production in Shanghai
Cost leadership through implementation of best available technologies / License agreement with Sumitomo Chemical
plans to build another chlorine recycling plant at the Bayer
Integrated Site Shanghai (BISS). The process for this new unit is
based on the catalytic oxidation of hydrogen
chloride using oxygen. The new technology has been
developed by the Japanese company Sumitomo Chemical Co., Ltd., and was licensed to Bayer
MaterialScience. The plant will ensure the chlorine supply of the
250,000 tons/year toluene diisocyanate (TDI) facility in Shanghai. Bayer
MaterialScience has now broken ground for this new plant, which
is based on the company's innovative gas phase phosgenation
process and is scheduled to come on stream in 2010.
The process will take hydrogen chloride co-produced during the manufacture of isocyanates, and will convert it very efficiently to chlorine which is re-used as raw material. During the past years, Sumitomo Chemical has enhanced the process and proven its technical viability in combination with already operating manufacturing plants.
At BISS, Bayer MaterialScience has just started a new hydrochloric acid electrolysis plant to supply the 350,000 tons/year diphenylmethane diisocyanate (MDI) train with chlorine. It uses the energy saving Oxygen Depolarized Cathode technology, which has been developed by Bayer and partners.
"By combining these two innovative technologies, we will strengthen our cost leadership in the isocyanate production. We will also be able to significantly reduce energy consumption and by that contribute to climate protection," adds Peter Vanacker.
Bayer AG (Leverkusen, Germany; www.bayer.com), through a partnership with UhdeNora, a joint venture between Uhde (Dortmund, Germany; www.uhde.com) and de Nora SpA (Milan, Italy), and de Nora North America, has launched a worldwide marketing campaign for an electrochemical process that converts hydrochloric acid, a byproduct of vinyl chloride monomer or isocyanate production, to chlorine and water using 30% less electricity than the conventional diaphragm electroreduction process. Dubbed oxygen depolarized cathode (ODC 酸素還元カソード) electrolysis, the process yields Cl^sub 2^ that is 99.9% pure and can be recycled directly without the need for cleaning steps in between, says Fritz Gestermann, manager of process development for electrolysis at Bayer Material Science.
January 23, 2009 Xinhua via COMTEX
Chlor-Alkali Chemical to withdraw from JV with Bayer China
Shanghai Chlor-Alkali Chemical Co., Ltd Friday announced that it planned to withdraw its 10 percent interest in the Bayer (Shanghai) Polymer Co., Ltd.
Bayer (Shanghai) Polymer Co., Ltd was co-founded by Bayer China Co., Ltd and Shanghai Chlor-Alkali Chemical on Sept. 24, 2001 with 564.3 million US dollars of total investment and 188.1 million US dollars of registered capital.
Of the total investment, 169.29 million US dollars were invested by Bayer China and 18.81 million US dollars by Chlor-Alkali Chemical, taking 90 percent and 10 percent, respectively.
Bayer Polymer has been engaged in the production and sale of polycarbonate, bisphenol-a and other polymer mixing materials.
The announcement showed that by Sept. 30, 2008, the total assets of Bayer Polymer amounted to 4,593.0163 million yuan, and its gross liabilities, 3,846.1686 million yuan, leaving owner's equity of 746.8477 million yuan.
Chlor-Alkali Chemical will quote the 10-percent stake in Bayer Polymer on the Shanghai United Assets Equity Exchange at a price higher than investment cost.
The share transfer is expected to improve cash flow of Chlor-Alkali Chemical, and further help it cut financial cost.
Apr 15, 2009 SinoCast Daily Business Beat
Chlor-Alkali Chemical Sells 10% of Bayer Polymers (Shanghai)
Shanghai Chlor-Alkali Chemical Co., Ltd. has sold a 10% stake in Bayer Polymers (Shanghai) Co., Ltd. for CNY 230 million to Bayer MaterialScience AG.
Bayer builds world's largest production plant for carbon nanotubes in Chempark Leverkusen
Bayer MaterialScience has begun work on the construction of a new facility for the production of carbon nanotubes (CNTs) in Chempark Leverkusen. The new plant will have a capacity of 200 tons/year, making it the largest of its kind in the world. The company is to invest around EUR 22 million in the planning, development and construction of the plant, which will create 20 new jobs. "We are investing in a key technology of the future that will open up a broad range of new applications for us. We intend to utilize this opportunity to the full. At the same time, the construction of the new CNT facility is a declaration of faith in Leverkusen and the State of North Rhine-Westphalia as an industrial location," said Dr. Wolfgang Plischke, the member of the Bayer AG Board of Management responsible for innovation, technology and the environment, at a press conference to mark the start of construction. Current forecasts predict that the global market for carbon nanotubes will grow by 25 percent a year. In ten years, annual sales of these products are expected to reach US-Dollar 2 billion.
February 12, 2009 Bayer
Bayer Schering Pharma to invest 100 million Euro in China to build a global R&D center
Bayer Schering Pharma AG, the pharmaceutical division of Bayer HealthCare (BHC), announced today that it will be strengthening its global Research and Development (R&D) capabilities through the foundation of a global R&D center in Beijing, China. The company will invest some 100 million Euro over the next five years to establish the center. With the establishment of the R&D center in China, especially Asian patients will benefit from considering their clinical profile and medical needs early-on.
March 1, 2010 2007/2/14 バイエル、上海のTDI計画の能力拡大
planning new world-scale TDI plant at Dormagen site
EUR 150 million investment in the future /
New production process was developed in Dormagen /
Energy savings of up to 60 percent versus conventional plants
Bayer MaterialScience plans to invest roughly EUR 150 million in a new high-tech production plant for TDI (toluene diisocyanate) at Chempark Dormagen. TDI is a precursor for the production of polyurethane flexible foam. The new plant will have a capacity of 300,000 tons per year and will replace the existing plants in Dormagen and Brunsbuttel. The background behind the project is the company's European-wide optimization of isocyanate production. "This investment is a clear commitment to North Rhine-Westphalia as an industrial location. It is intended to strengthen Dormagen as a global TDI technology center and to provide long-term security for the competitiveness of Chempark Dormagen and the jobs at the plant and in the region," declares Dr. Tony Van Osselaer, member of the Bayer MaterialScience Board of Management.
MDI production at Brunsbuttel will be expanded to a total capacity of 400,000 tons/year by making use of the existing capacity of 160,000 tons/year and the existing infrastructure, and by converting the present TDI plant to an MDI facility.
The innovative and
patented TDI process technology to be used in the planned
facility sets new standards worldwide for efficient and
climate-friendly TDI production. "The expertise that flowed
into our TDI process innovation originated in Dormagen, which is
a source of great pride to us here,"
says Dieter Kuhne,
Head of TDI Production in Dormagen. "Our process enables us
to achieve energy savings of up to 60 percent
with a conventional plant of the same size. Furthermore, the
technology requires up to 80 percent less solvent. These factors
contribute to a significantly better energy and environmental
balance," adds Kuhne.
Start of the approval process
Bayer MaterialScience first presented plans to erect a new TDI production plant in Dormagen in December 2008. The second phase of the project is scheduled to begin in April 2010 with the "scoping" hearing, to which the Cologne regional government is invited as the regulatory authority. Subject to political acceptance and approval being granted by the authorities, the world-scale plant will be built on the site of the coal-fired power plant, which will be torn down. The new TDI production plant is currently scheduled to go on stream in 2014. Dormagen will then be the sole Bayer MaterialScience site in Europe for the production of TDI. Plans call for the production of raw materials for polyurethane rigid foams to be expanded in Brunsb・tel.
Chempark Dormagen offers ideal conditions
Chempark Dormagen was chosen as the site for the TDI plant in a Europe-wide selection process, with the availability of raw materials and precursors as well as the existing infrastructure being key factors in the decision. The significantly greater production capacity of the planned plant means that it will also require correspondingly greater quantities of raw materials. Whereas chlorine is already available in sufficient quantities in Dormagen, a new reformer must be built to cover the increased demand for carbon monoxide. The starting materials required for this are also available in Dormagen. Furthermore, the hydrogen produced as a byproduct of carbon monoxide production can also be further processed directly on the site.
"We are very pleased that Bayer MaterialScience has chosen Dormagen for this important investment. A plant of this size will also bring with it a series of follow-up investments, thus securing our competitiveness for the long-term," says Dr. Walter Leidinger, Head of Chempark Dormagen. The site offers the infrastructure required for these investments.
From process innovation to large-scale production
TDI has been produced in Dormagen since 1964. "We have decades of experience with the production of TDI," notes Kuhne. The new world-scale plant will use an innovative process technology that has proved itself over the last six years in a Dormagen pilot plant. The new TDI process - a quantum leap in terms of energy efficiency, environmental compatibility and productivity ? meets the most stringent safety standards. A large-scale plant based on this process currently under construction in Caojing, near Shanghai, China, is scheduled to go on stream in mid-2011.
TDI - a raw material with a future
TDI is an important precursor for the production of polyurethane flexible foams. It is used to produce durable and high-quality comfort products that have become integral parts of modern daily life. Examples include sleep-friendly cold foam mattresses, high-end chairs and seating, and back-friendly cushions for office chairs and automobile seats, but also precision-fit protective packaging, protective cushioning for microphones and headphones and numerous other applications in the sports and leisure segment. Bayer MaterialScience expects the demand for TDI to continue to increase. With the efficient and sustainable TDI process, Bayer MaterialScience hopes to further expand its leading competitive position in this global market, which is expected to experience long-term growth.
About Bayer MaterialScience:
With 2008 sales of EUR 9.7 billion, Bayer MaterialScience is among the world's largest polymer companies. Business activities are focused on the manufacture of high-tech polymer materials and the development of innovative solutions for products used in many areas of daily life. The main segments served are the automotive, electrical and electronics, construction and sports and leisure industries. Bayer MaterialScience has 30 production sites around the globe and employed approximately 15,100 people at the end of 2008. Bayer MaterialScience is a Bayer Group company.
November 3, 2010
Bayer acquires Animal Health Company Bomac in New Zealand
Complementary portfolios with strong growth opportunities in combining both businesses /
Creation of southern hemisphere hub to drive product innovation
Today, Bayer AG announced the acquisition of Auckland based Bomac Group; the parties signed a purchase agreement. With this acquisition Bayer will strengthen its worldwide Animal Health business with a special emphasis on emerging markets in the southern hemisphere. Bomac has a broad range of 290 products, especially in the area of food animals. The main focus is on the treatment of mastitis 乳腺炎 with dairy cattle and parasiticides 寄生虫駆除剤 in sheep. Bayer aims to benefit also from Bomac's Research & Development expertise, especially with respect to mastitis management and parasite control. Due to confidentiality obligations, no financial information is disclosed at this point in time.
Both companies regard the acquisition as a promising new phase in their business development. The transaction represents a fit in all important aspects of the businesses including product portfolio and innovation pipeline.
It is planned to close the transaction upon receipt of the necessary regulatory approvals, and begin combining the two businesses thereafter. Due to the complementary nature of both businesses, no major synergies are expected.
The transaction is seen as a win-win situation for both companies. "The acquisition of Bomac gives us the opportunity to capture local innovation and lever it across the fastest growing markets in the world", says Dr. Alexander Jahn, Head of Region International within Bayer Animal Health.
Connel McLaren, Managing Director of Bomac, also remarks on the positive aspects of the acquisition: "We chose Bayer as the perfect partner to help us take our innovation beyond Asia/Pacific. Bayer shares our belief that New Zealand is an ideal place to undertake new product development. Bayer's commitment to expanding our research and development activity is a great outcome for New Zealand."
Both companies also have successful businesses in Australia and plan to further expand their combined product offering across the Tasman.
Founded in 1958 Bomac is New Zealand's largest privately owned dedicated animal health company.
Operating from modern GMP facilities in Auckland the company manufactures over 290 production animal, equine and companion animal products for sale in New Zealand and to over 60 countries worldwide.
A significant commitment to R&D has seen Bomac average over 20 new product approvals per year in NZ since 2007. These include innovative mastitis and reproduction products, injectable solutions and suspensions, intra-ruminal devices, and sheep, cattle and equine parasiticides.
This enviable track record of new products and delivery systems has underpinned the company's continued growth as Bomac and its 200 staff in New Zealand and Australia strive to be "First for Animal Health". www.bomac.co.nz.
November 18, 2010 Bayer
Bayer focuses resources on growth and innovation
necessary in development pipeline, marketing and emerging markets
Annual savings of EUR 800 million planned from 2013 /
Planned net reduction of about 2,000 jobs worldwide by the end of 2012
Bayer plans to invest its
resources even more systematically in growing the company and
enhancing its innovative capability. The focus will be on researching,
developing and marketing new products, particularly in HealthCare and
on expanding activities in the emerging markets. This will require a high level
of investment in the coming years. However, sales and earnings
are under pressure from generic products, rising development
costs and the effects of health care reforms. "To finance
the expansion of our growth activities, we therefore need to redirect
resources, improve efficiencies and cut costs," explained Bayer AG Management
Board Chairman Dr. Marijn Dekkers.
To raise investment in further growth, annual cost savings of EUR 800 million are planned starting in 2013. About half of this amount is to be reinvested. By the end of 2012 the company is likely to take one-time charges in the region of EUR 1 billion, with part of this amount already being incurred in the fourth quarter of 2010.
In connection with this program, it is planned to reduce the global headcount of 108,700 by an aggregate of about 2,000 by 2012. Approximately 4,500 positions - including roughly 1,700 in Germany - are to be cut, while some 2,500 new jobs will be created over the same period, particularly in the emerging markets.
"Bayer has great business potential in all three subgroups. To better exploit this potential, we must continue to bundle existing resources and streamline our structures. That is the only way we can sustainably finance our investment in growth and innovation ? for example in new pharmaceutical products, in our BioScience business and in the expansion of our capacities in Asia," said Dekkers. "The cutbacks involved will not be easy, but they are necessary. I am convinced that with more innovation and less administration, Bayer can become a better and faster company."
ドイツ レバクーゼン、2010年11月18日― ドイツ・バイエル社（本社：ドイツ レバクーゼン、社長：マライン・デッカーズ）は、成長と技術革新の向上のためにさらに体系的にリソースを投下する予定である。特にヘルスケア、農薬関連の 領域における新製品の研究、開発、マーケティングであり、新興市場のおける事業拡大が中心となる。これらは今後、多大な投資が必要となると予測されてい る。しかしながら、売上と利益は後発品の浸透、開発コストの上昇、医療制度の改革の影響を大きく受けている。ドイツ・バイエル社のマライン・デッカーズ社 長は「当社の成長領域の拡大のための資金を確保するには、リソース配分の見直し、効率性の改善、コスト削減の必要があります」と語っている。
本プログラムに関連して、バイエルグループ全体の108,700名の従業員のうち約2,000名が2012年末までに削減されることが計画され ている。約4,500のポジション（内1,700のポジションはドイツ国内）が削減対象となるが、その一方で同期間内に新興市場を中心に約2,500の新 しいポジションが設けられる。
デッカーズ氏は「バイエルは３つの事業グループにおいて事業拡大の潜在性を有しています。この潜在性をさらに具体化していくために既存のリソー スを集約し、組織改変の必要があります。これが、成長と技術革新、例えば医療用医薬品の新製品、バイオサイエンス事業、そしてアジア地域における生産能力 の拡大などを対象とする持続可能な投資を実現するための唯一の方策です。関連する組織縮小は容易なことではありませんが、必要なものです。技術革新の強化 と管理の簡素化によりバイエルはより良い、そしてスピーディーに対応できる企業になることができると確信しています」と語っている。
December 9, 2010
Bayer plans to significantly expand capacities in China
Group sales in Greater
China planned to increase to around EUR 5 billion by 2015 /
New MaterialScience production plants to be constructed and existing ones expanded /
Expansion of research and development activities /
Headquarters of the Polycarbonates Business Unit to move to Shanghai
Bayer intends to significantly expand its capacities for the production of high-grade materials in China by 2016. Investments of around EUR 1 billion are planned at the Shanghai site. This means Bayer will focus even more intensively on the Asia/Pacific region, where it expects consistent growth in its customer industries. Capacities for the polyurethane raw material MDI are to be more than doubled to one million metric tons a year and for high-performance polycarbonate to 500,000 t/y. The company also intends to significantly strengthen its research and development activities there. Moreover, the headquarters of the Polycarbonates Business Unit will be relocated from the main Leverkusen site to Shanghai. The intention is to ensure even greater proximity to the booming polycarbonates market in Asia.
expansion of our capacities in China is an important step in
strengthening our presence in the emerging economies,"
explained Bayer AG's Management Board Chairman, Dr. Marijn
Dekkers. "We want to increase Group sales in
Greater China to around EUR 5 billion by 2015. MaterialScience is expected to contribute at
least half of this amount." In fiscal 2009, the Bayer Group
in Greater China recorded sales of EUR 2.1 billion, of which EUR 1.2 billion was
accounted for by MaterialScience.
"The strong economic growth in China and in the whole region offers us outstanding opportunities, and we want to make the most of them," added Patrick Thomas, CEO of Bayer MaterialScience. "For us, it is strategically important to have the necessary capacities in the Asia/Pacific region to meet constantly rising demand."
Thomas emphasized that this was one of the biggest single investments to date for Bayer MaterialScience. In terms of sales, China is the second most important country in the world for the Bayer subgroup. It is already investing EUR 2.1 billion in Shanghai as part of a long-term project lasting until 2012. Together with the now announced expansions, this means a total investment of more than EUR 3 billion. For these new projects, a memorandum of understanding has now been signed with the relevant authorities.
Five production projects
Five separate projects are planned - in cooperation with Bayer Technology Services - to increase production capacity at the Shanghai Chemical Industry Park. For polycarbonate, a new facility is scheduled to be built with a capacity of 200,000 metric tons a year. In addition, it is planned to increase the capacity of the existing plant by 100,000 to 300,000 t/y. The Asia/Pacific region currently accounts for around 60 percent of the world's total polycarbonate market, with the greatest demand coming from China. The plastic is used predominantly in the automotive, electrical and electronics, and construction industries.
In addition, Bayer wants to increase its capacities in Shanghai for raw materials for the production of polyurethane rigid foam, which is used, for example, to save energy throughout the cool chain as an insulant. To this end, it plans to build a new MDI plant with an annual production capacity of 500,000 tonnes. At the same time, the company also intends to expand the capacity of its present MDI production facility from 350,000 to 500,000 t/y.
A further part of this investment package is the expansion of HDI production. HDI is an important starting product for high-quality surface coatings. There are plans to expand the capacity of the existing HDI production to meet short term market demand. The construction of a further 50,000-tonnes/year HDI production facility is also planned.
Only recently, Bayer MaterialScience announced the construction of five customer support facilities in Shanghai and three other Chinese cities. They will focus on customized production and further processing. The company has earmarked a further EUR 110 million for this project.
With the expansion of its research and development center for polymers in Shanghai, Bayer MaterialScience intends to strengthen its capability as a provider of innovative solutions. It plans to concentrate on areas in which China plays a leading global role, such as wind turbines and solar energy plants. The other research and development facilities in Europe and the United States will continue to be dedicated to further promising areas of research and to be part of the company's global R&D network.
New headquarters for polycarbonate activities
Furthermore, Shanghai will become the new headquarters of the global polycarbonate activities of Bayer MaterialScience. The management team headed by Dr. Günter Hilken will move there from Leverkusen. The relocation is scheduled to begin next year. By moving closer to its customers, Bayer MaterialScience is taking account of the importance of the region for the global polycarbonates market. The company expects this step to speed up decision-making processes and to achieve more efficiency generally in day-to-day work processes.
About Bayer MaterialScience:
With 2009 sales of EUR 7.5 billion, Bayer MaterialScience is among the world's largest polymer companies. Business activities are focused on the manufacture of high-tech polymer materials and the development of innovative solutions for products used in many areas of daily life. The main segments served are the automotive, electrical and electronics, construction and the sports and leisure industries. At the end of 2009, Bayer MaterialScience had 30 production sites and employed approximately 14,300 people around the globe. Bayer MaterialScience is a Bayer Group company.
March 14, 2011 Bayer
Plans to expand MDI plant
Bayer MaterialScience to invest Euro 100 million in Germany
MDI plant Brunsbüttel: rise of production capacity to 420,000 metric tons a year
Bayer MaterialScience plans to invest roughly Euro100 million in the expansion of the high-tech production plant for MDI (diphenylmethane diisocyanate) at the Bayer Brunsbüttel Industrial Park in Germany. The project is part of the phased optimization concept announced previously for isocyanate production in Europe. The first of the coordinated phases is the construction of a new high-tech production plant for TDI (toluene diisocyanate) in Dormagen with an annual capacity of 300,000 metric tons per annum (tpa). The facility is scheduled to come on stream in 2014. Somewhat later, the annual capacity of the existing MDI plant in Brunsbüttel will be expanded from 200,000 metric tons to a total of 420,000 tpa. The TDI plant at the site will be converted to MDI as part of this measure.
“This investment is a clear
commitment to the Brunsbüttel site. The planned world-scale
MDI production facility is intended to strengthen the site and to
provide long-term job security at the plant and in the region,”
says Dr. Tony Van
Osselaer, member of the Bayer MaterialScience Board of
Start of the permitting process
The responsible authorities are expected to initiate the first step, what is known as the scoping process, in May 2011. The plant is scheduled for commissioning in 2015/2016, depending on the length of the permitting process and developments in the market.
"The plastics industry expects global demand for MDI and TDI to continue to rise," says Peter Vanacker, member of the Executive Committee of Bayer MaterialScience and responsibe for the Business Unit Polyurethanes. "With the phased implementation of our optimization concept, we hope to further expand our leading position in this global market, which is expected to experience long-term growth."
MDI is the raw material for polyurethane rigid foam, which is very effective when used for thermal insulation in buildings and in the refrigeration train. The energy savings achieved help to reduce CO2 emissions. In addition, applications in modern vehicle construction provide for enhanced safety. Many national regulations require the automotive industry to incorporate specific safety features designed to reduce the risk of injury to pedestrians in the event of an accident. MDI offers these properties.
Bayer Brunsbüttel Industrial Park offers ideal conditions
The Bayer Brunsbüttel Industrial Park was chosen over other Bayer sites for the world-scale MDI plant, with the availability of raw materials and precursors as well as the existing infrastructure being key factors in the decision. The significantly greater production capacity of the planned plant means that it will also require greater quantities of raw materials. A corresponding expansion of the existing MDA facility as well as a new plant for aniline will ensure their supply.
“We are very pleased that Bayer MaterialScience has chosen Brunsbüttel for this important investment. A plant of this size ensures our competitiveness and secures both jobs and training positions for the long-term," says Dr. Volker Weintritt, site and production manager of the Brunsbüttel site.
From process innovation to large-scale production
MDI has been produced in Brunsbüttel since 1988. “We have extensive experience with the production of MDI,” says Weintritt. Bayer MaterialScience will deploy the latest technologies for this project. The new aniline plant, for example, will use the same adiabatic process used at a plant taken on stream in China in 2008. This process conserves resources and uses less energy than other processes.
7 August 2011 guardian.co.uk
Bayer threatens to quit Germany over nuclear
German companies may relocate production to countries with lower energy costs
Germany's decision to phase out nuclear power after the Fukushima catastrophe in Japan could lead to some of the country's major companies relocating elsewhere in search of cheaper energy.
Marijn Dekkers, head of Bayer, the pharmaceuticals group, said: "It is important that we remain competitive compared with other countries. Otherwise, a global company like Bayer will have to consider relocating its production to countries with lower energy costs."
Under a package of energy bills passed last month by the German government, all nuclear power facilities in the country will be taken offline by 2022. Analysts say that the move will hit energy companies hard and contribute to an increase in electricity prices.
Dekkers told the business magazine WirtschaftsWoche that Germany's electricity costs were already the highest in the EU, making the country "unattractive" for the chemicals industry.
Bayer, which developed the first aspirin in 1897, employs more than 35,000
people in Germany. Dekkers said that his company was planning 4,500 job cuts
worldwide – including 1,700 in Germany – but that it was already investing in
"Overall, we will create over 2,500 new jobs in countries like Brazil, India, Russia or China," he told WirtschaftsWoche.
The report also quoted Robert Hoffmann, head of the communications company 1&1, saying that taxes to subsidise renewable energy sources were too high in Germany. Hoffmann said that his company drew energy from Norwegian hydropower plants, but that it still had to pay a contribution to German renewable energy costs.
"Essentially, we're subsidising the construction of solar-powered roofs... So we end up paying double," he said. Hoffmann said that his company was looking at locations where "green electricity exists without the extra costs".
In a report released last week, the Swedish energy company Vattenfall attributed a fall of 10.2bn Swedish krona (£1bn) in operating profit for the second quarter of 2011 to "a one-off effect of the German parliament's decision to phase out the country's nuclear power".
The move has also prompted concerns about disrupted power supplies. German transmission systems operators have warned there could be a risk of power outages this winter, and have questioned the reliability of renewable energy sources, saying there is still a need for base power sources to ensure the stability of the grid.
November 16, 2011 Bayer
Bayer plans further expansion in Asia
Sales in the region to grow to well over
EUR 11 billion by 2015 /
Some EUR 6 billion in sales expected in Greater China alone /
Plans to expand production, distribution network and research /
Further capital expenditures of EUR 1.8 billion in Asia by 2015 /
New TDI production facility dedicated in Shanghai
The Bayer Group plans to further expand its production, distribution network and research activities in Asia and considerably increase its sales in the region in the coming years. “We aim to achieve a more than 60 percent increase in our sales in Asia by 2015,” Management Board Chairman Dr. Marijn Dekkers said on Wednesday at Bayer’s international press conference “Perspective on Growth in Asia,” held in Shanghai, China. This would mean annual sales of well over EUR 11 billion by 2015 at today’s exchange rates. Of this figure, Greater China is planned to account for some EUR 6 billion. Dekkers officially inaugurated a new production facility for TDI – a raw material for the production of flexible foams – at the Bayer Integrated Site Shanghai.
At the press conference, attended by more
than 100 media representatives – with journalists in India, Vietnam and
Indonesia participating via live video link – Dekkers explained the company’s
perspectives in the emerging countries of Asia. He said the Bayer Group already
does a significant proportion of its business in Asia. Twenty years ago, Asia
accounted for only about 10 percent of sales, equivalent to just over EUR 2
billion. Ten years ago, the proportion had grown to about 15 percent, and last
year the region already accounted for some 20 percent of sales. In the Asian
region, Bayer achieved sales of EUR 6.9 billion in 2010, including EUR 2.9
billion in Greater China, and anticipates further growth in Asia in 2011. “We
have made capital expenditures of EUR 3.4 billion in Asia over the past 10
years, creating a basis for outperforming market growth in this region,” said
Bayer has laid a firm foundation for expansion. “Our country organizations here have had local roots for many years, in fact we have been operating for more than a century in China, India and Japan,” said Dekkers. “We are familiar with the markets, and we know how to tune our approaches to the different conditions prevailing in different markets in order to further expand our business.”
Megatrends particularly strong in the emerging Asian markets
Asia is a remarkable continent with particularly strong growth momentum, Dekkers continued. He said the change processes resulting from global megatrends are especially rapid and fundamental in the emerging markets. These megatrends include rising life expectancy, which is greatly increasing the demand for health care. “Products from Bayer HealthCare help to keep people healthy, cure diseases and significantly improve the quality of life – also for elderly people,” said Dekkers.
Another megatrend is the growth in the world population, which is expected to increase by another 2 billion to 9 billion over the next 40 years. At the same time, more and more agricultural land is being used for energy production. “Our researchers at Bayer CropScience are helping to increase yields on the limited amount of agricultural land available, and to reduce harvest losses,” Dekkers pointed out.
According to Dekkers, humankind must also bring the megatrend of climate change to a halt and start reversing it. Asia consumes more energy than North America and Europe combined, he said. “Products from Bayer MaterialScience not only help to save energy through high-performance thermal insulation in buildings or lighter-weight materials in vehicles, they also improve the performance of wind turbines, for example. And we take care to use energy-saving processes in the manufacture of our products.”
Further investment in production, distribution, research and human resources
All the Asian countries are intended to play a part in achieving the sales increase targeted for 2015. Apart from China, this applies particularly to India, where sales are expected to grow from just over EUR 0.5 billion last year to about EUR 1 billion. Sales in Japan are planned to rise from just under EUR 2 billion to around EUR 2.4 billion. To meet its targets, Bayer intends to improve the availability of its products in Asia. “We already operate major production facilities here and intend to go on expanding in the future,” said Dekkers. He said Bayer will continue to expand its distribution network to serve the subcenters and rural areas as well.
In addition, Bayer intends to participate in the region’s transition to an innovation hub of the globalized world. Here the company is focusing on collaborations with the leading institutes and centers of expertise, as well as its own activities. “We will also continue to invest in local research and development and thus contribute our know-how to the R&D landscape here. And in doing so, we are taking account of Asia’s particular needs,” said Dekkers. That applies, for example, to diseases that occur more frequently there than in other parts of the world – such as liver cancer. Bayer also wants to improve access to its new medicines in Asia by integrating Asian patients into the early stages of global development programs, and plans to submit innovative medicines for registration concurrently in Asia, Europe and the United States.
Bayer CropScience works with agricultural crops that are particularly important in Asia, Dekkers explained. The subgroup’s focus is therefore on research and development projects for crops such as oilseed rape/canola, rice, cotton, soybeans, wheat and vegetables. Bayer MaterialScience not only supplies industrial customers with locally manufactured polymer products, it also offers the necessary technical advice and applications development know-how through its systems houses.
To meet its growth targets in Asia, Bayer plans to develop the necessary personnel resources, Dekkers continued. The company’s Asian workforce has increased by nearly 8 percent in the past 12 months alone. “And we expect to see a further rapid increase in employment in the coming years.” The number of employees in Asia could increase from 23,700 in 2010 to more than 30,000 by 2015. Capital expenditures of some EUR 1.8 billion are also planned during this period.
Bayer aiming for rapid growth in all subgroups in China
A major focus of Bayer’s activities is Greater China, now the company’s biggest market in the region. In the first nine months of 2011, Bayer had some 11,000 employees in Greater China and sales of EUR 2.2 billion (RMB 19.8 billion), which was 8 percent of Bayer Group sales. Bayer MaterialScience accounted for 59 percent, Bayer HealthCare for 37 percent and Bayer CropScience for approximately 4 percent of this figure. “We want all of our subgroups in China to continue their rapid growth,” said Dekkers. Bayer plans to increase sales in Greater China to about EUR 6 billion by 2015, with MaterialScience accounting for about EUR 3 billion of this figure, HealthCare for EUR 2.5 billion and CropScience for a good EUR 300 million.
Dekkers described the steady double-digit growth rates in the Chinese pharmaceutical market as remarkable, pointing out that Bayer is one of the five largest health care companies in China. Local sales of Bayer HealthCare in 2010 amounted to EUR 926 million (RMB 8.2 billion), with the prescription medicines of the Pharmaceuticals Division accounting for 80 percent of this figure and non-prescription medicines, medical devices and animal health products for 20 percent.
With a market share of nearly 5 percent and EUR 130 million (RMB 1.2 billion) in sales, Bayer CropScience is the number three supplier in the Chinese crop protection market. “Our aim is to be the supplier of choice in China’s most important crops – especially rice and vegetables,” said Dekkers, adding that the key to this lies in comprehensive solution packages – including innovative products – that give effective support to farmers.
The Chinese market is of considerable importance for the MaterialScience business. For example, China is the world’s biggest market for the construction industry, for automobiles and railway vehicles, for the electrical and electronics industry, and for shoe production. These industries are among the principal customers of Bayer MaterialScience. Last year Bayer MaterialScience had sales of EUR 1.8 billion (RMB 16.3 billion) in Greater China.
New TDI plant dedicated
On Wednesday, in the presence of numerous guests as well as high-ranking politicians and officials, Dekkers inaugurated a new TDI production facility with a planned capacity of 250,000 tons per year at the Bayer Integrated Site Shanghai. The plant is based on a new process technology that reduces solvent use by some 80 percent compared with plants of a similar size that use the conventional process. It also lowers energy consumption by up to 60 percent. The use of this technology also enables substantial savings on operating costs and a reduction of roughly 60,000 tons per year in carbon dioxide emissions. In addition, the new technology cuts the investment costs for large-scale plants of this type by around 20 percent.
Second investment phase at the Shanghai production site
“We have been operating at the Shanghai Chemical Industry Park for ten years,” the Bayer CEO remarked. Bayer MaterialScience has invested EUR 2.1 billion in production facilities for all of its major products on this site. The company intends to follow this first phase of investment with a second phase. Bayer plans to spend a further EUR 1 billion to expand its MDI capacity to 1 million tons per year, increase its polycarbonate capacity to 500,000 tons annually and build a new HDI line that will raise annual capacity by 50,000 tons. “These are considerable capital expenditures involving significant capacity expansions. It goes without saying that we use the very latest technology in our facilities,” Dekkers stressed.
October 30, 2012 Bayer
Bayer to acquire Schiff Nutrition International for US$ 1.2 billion
Bayer HealthCare LLC has signed a merger
agreement to acquire Schiff Nutrition International, Inc.,
a leading company offering vitamins and nutritional
supplements in the United States and other countries. Schiff’s product
portfolio includes core brands MegaRed®, Move Free® and Airborne®, among others.
The transaction values Schiff at approx. US$1.2 billion
(approx. EUR 920 million) representing US$34 per share in cash. Closing is
subject to customary closing conditions and is expected by year end 2012.
“Bayer is committed to augment its organic growth with strategic bolt-on acquisitions. This transaction represents an excellent strategic fit for our HealthCare business,” said Dr. Marijn Dekkers, CEO of Bayer AG. “The Schiff business significantly enhances our presence and position in the United States, which accounts for more over-the-counter and nutritional products sales than any other country in the world.”
“We will utilize our extensive marketing, sales and distribution expertise to further develop the strong brands we are acquiring,” said Dr. Jörg Reinhardt, CEO of Bayer HealthCare. “We will also look to leverage Schiff’s new technology platforms with innovation potential for other Bayer-owned brands and markets globally.”
Tarang P. Amin, President and CEO of Schiff, said, “Schiff has a 75 year heritage of providing consumers with quality nutritional products. We are focused on building premium brands and leading innovation. We believe Bayer is well positioned to take our leading brands to the next level.”
Schiff generated net sales of US$259 million (approx. EUR 200 million) for its fiscal year ended May 31, 2012. On September 18, 2012, Schiff publicly announced that net sales for fiscal year 2013 were projected to grow between 43 and 46 percent. Expected sales growth includes contributions from new products and brand building as well as Airborne®, which was acquired by Schiff on March 30, 2012.
The company employs approximately 400 people with its headquarters and manufacturing site based in Salt Lake City, Utah, as well as offices in Emeryville, California. The Schiff portfolio includes strong brands in three of the largest health supplement segments including Joint Care (Move Free®), Cardiovascular Health (MegaRed®) and Immune Support (Airborne®), among others. These products complement Bayer’s existing OTC portfolio and will allow it to provide consumers with a broad range of options in these key segments.
About Schiff Nutrition
Schiff Nutrition International, Inc. is a leading nutritional supplement company offering vitamins, nutritional supplements and nutrition bars in the United States and abroad. Schiff’s portfolio of well-known brands includes MegaRed®, Move Free®, Airborne®, Tiger's Milk®, Digestive Advantage® and Schiff® Vitamins. Focused on quality for 75 years, Schiff’s headquarters and award-winning manufacturing and distribution facility are based in Salt Lake City, Utah. To learn more about Schiff, please visit the web site www.schiffnutrition.com.
2012/11/16 Reckitt Benckiser
Reckitt Benckiser commences all-cash tender offer of $42 per share to acquire all outstanding shares of Schiff Nutrition
Reckitt Benckiser Group PLC today announced it has commenced its previously announced tender offer to acquire all of the outstanding shares of Schiff Nutrition International, Inc., a leading provider of branded vitamins, nutrition supplements and nutrition bars in the United States and elsewhere, for $42.00 per share in cash, or approximately $1.4 billion.
Bayer to acquire Schiff Nutrition International for US$ 1.2 billion
About Reckitt Benckiser
Reckitt Benckiser (RB) is a global consumer goods leader in health, hygiene and home, listed on the London Stock Exchange (LSE). With a purpose of delivering innovative solutions for healthier lives and happier homes, RB is in the top 25 of companies listed on the LSE. Since 2000 net revenues have more than doubled and the market cap has quadrupled. Today it is the global No 1 or No 2 in the majority of its fast-growing categories, driven by an exceptional rate of innovation. Its health, hygiene and home portfolio is led by 19 global Powerbrands including Nurofen, Strepsils Gaviscon, Mucinex, Durex, Scholl, Lysol, Dettol, Clearasil, Veet, Harpic, Bang, Mortein, Finish, Vanish, Woolite, Calgon, Airwick, and French’s, and they account for 70% of net revenue.
RB people and its culture are at the heart of the company’s success. They have an intense drive for achievement and a desire to outperform wherever they focus, including in CSR where the company has reduced its carbon footprint by 20% in 5 years and is now targeting to deliver a 1/3 reduction in water use, 1/3 further reduction in carbon and have 1/3 of its net revenue coming from more sustainable products by 2020. It is also the Save the Children charity’s largest FMCG global partner.
The company has operations in over 60 countries, with headquarters in the UK, Singapore, Dubai and Amsterdam, and sales in almost 200 countries. The Company employs approximately 32,000 people worldwide.
Reckitt Benckiser Offers $1.4 Billion for Schiff
Reckitt Benckiser Group offered to buy Schiff Nutrition International Inc. for $1.4 billion, weeks after the vitamin maker's main shareholders agreed to a lower-priced buyout bid from Bayer AG.
Reckitt Benckiser's all-cash offer values Schiff's shares at $42, a 23% premium to the vitamin and supplement company's Thursday closing price. Schiff's shares jumped 28% after hours to $43.52.
Reckitt Benckiser's offer is also 24% higher than the $34-a-share deal proposed by German pharmaceutical and chemical company Bayer at the end of October. Bayer said it intended to bolster its U.S. consumer-health operations with the acquisition.
Schiff's two main shareholders, who hold a combined 85% of voting rights in the company, accepted Bayer's bid, triggering a squeeze-out of the minority shareholders under U.S. law, Bayer Chief Financial Officer Werner Baumann has said.
Reckitt Benckiser Chief Executive Rakesh Kapoor said in an interview that he is confident that Schiff's board will recognize that the latest offer is superior and that a deal can be closed quickly.
"We believe we have made a very competitive offer," Mr. Kapoor said Friday.
Mr. Kapoor said Thursday that acquiring Schiff would provide a powerful entry into the growing global vitamins, minerals and supplements market, with "immediate scale" in the U.S. He valued the sector, which has been growing in size and competitiveness, at $30 billion.
The U.K.-based maker of Air Wick air freshener and Nurofen pain-relief tablets recently reported strong earnings, boosted by improving performance in Europe and North America, where it generates over half its sales, and growth in emerging markets across Asia-Pacific and Latin America. It wants the majority of its sales to come from developing economies, excluding food and pharmaceuticals, by 2016. It is moving away from household categories to concentrate on driving sales of higher-margin health and hygiene products.
Mr. Kapoor said the company hopes to grow Schiff in the same way that it has expanded other brands it has bought. "We hope that we can do great things with Schiff," he said.
Schiff generates 95% of its revenue in the U.S., selling popular brands such as MegaRed, Airborne and Move Free in the heart, immunity and joint care categories. The Salt Lake City-based group is just outside the top 10 players in the $22 billion U.S. vitamins and dietary supplements market, according to Bernstein data. It expects to generate sales of roughly $385 million for the fiscal year ending May 31, 2013.
Reckitt Benckiser bought U.S. drug maker Adams Respiratory Therapeutics, maker of Mucinex, in 2008. The Mucinex brand has since expanded and added cold and flu liquids, though it faced a setback earlier this year when a federal court ruling paved the way for a competitor, Perrigo Co., to launch a generic version of the treatment.
Reckitt has a solid track record for acquisitions in the consumer health and over-the-counter markets, said Deutsche Bank analyst Harold Thompson. "The growth and margin improvement which have been promised with each deal have always come through and more."
Bernstein Securities analyst Andrew Wood said Reckitt's play for Schiff has logic and could even merit a higher bid should a bidding war ensue.
"We believe this acquisition makes excellent strategic sense and good financial sense," and could trigger a counter-bid from Bayer, he said.
Other large consumer players, such as Johnson & Johnson, may also show interest, Mr. Wood said.
Bayer and Johnson & Johnson weren't immediately available to comment.
November 30, 2012 Bayer
150 years of Bayer: Success through
innovation and change
The Bayer Group will be celebrating its 150th anniversary in 2013 with numerous events around the world. "Bayer can look back on a long and highly successful history as an inventor company," explains CEO Dr. Marijn Dekkers. "What started as a small but innovative dyestuffs factory in the Barmen district of Wuppertal is now a global enterprise with more than 110,000 employees. In the past 150 years, Bayer inventions have time and again helped improve people's quality of life. This great tradition is also our commitment to the future - entirely in line with our mission of Bayer: Science For A Better Life." To mark the anniversary, Bayer is planning a series of events and projects worldwide throughout the coming year. These will focus on the company’s employees and their families - but neighbors, customers, partners and the scientific community are also to be included in the celebrations.
The general partnership "Friedr. Bayer et comp." was founded on August 1, 1863 in Barmen - now a district of the city of Wuppertal (ライン川の支流、ヴッパー川沿いに位置する工業都市)- by dye salesman Friedrich Bayer (1825-1880) and master dyer Johann Friedrich Weskott (1821-1876). The object of the company was the manufacture and sale of synthetic dyestuffs.
The production of these dyes from coal-tar derivatives had only been invented a few years previously, opening up a new field of business for the still-young chemical industry. Its market was the textile industry, which at the time was growing rapidly in the wake of industrialization. The natural dyes that had been used until then were scarce and expensive. New inventions, such as the synthesis of the red dye alizarin, and the strong demand for tar dyes led to a boom in new foundings. Many dye factories were built at this time, but only innovative companies with their own research facilities and the ability to exploit opportunities on the international market managed to survive over the long term. Bayer was one of these companies.
A joint stock company is established
The financial foundation for expansion was laid in 1881, when Bayer was transformed into a joint stock company called "Farbenfabriken vorm. Friedr. Bayer & Co." The company's impressive growth in its early years is evident from the size of the workforce, which grew from three in 1863 to more than 300 in 1881.
"Bayer products have become indispensable to
our lives," says Dekkers. One example is the pain reliever
Aspirin™, which came on the market in 1899 and remains one of Bayer's top
products to this day. Over the decades, Bayer's researchers have developed
pioneering active substances to treat infectious, tropical and cardiovascular
diseases, for example. Today, pharmaceuticals research at
Bayer HealthCare concentrates mainly on the fields of cardiology and
hematology, oncology, women’s healthcare and diagnostic imaging.
A further focal point of Bayer research is agriculture. When Bayer started selling Antinonnin, the world's first synthetic insecticide to control the nun mothノンネマイマイ, in 1892, it was the start of a success story. Today, Bayer CropScience is a global leader in its field. This success is based on innovations - not only chemical and biological crop protection products that offer sustainable solutions, but also high-quality seed. Added to this is a broad range of products and services for home and garden and forestry applications.
In the area of high-performance materials, the polyurethanes for foams discovered in the 1930s and the high-performance polycarbonate (Makrolon™) that was patented in 1953 form the basis for an ever-expanding range of applications. Today, high-performance materials from Bayer MaterialScience make an important contribution to conserving fossil resources. Polyurethanes, for example, are used to insulate buildings and thus reduce the amount of energy used in heating or cooling. Lightweight materials help make cars lighter, thereby cutting their fuel consumption. It is thanks to the invention of aliphatic polyurethane coatings that assets can be preserved for longer than ever before. Modern coating systems can withstand both wind and weather and put a shine on cars, ships, rail vehicles and wind turbines.
150 years of ongoing change and renewal
150 years of Bayer - an anniversary like this instantly calls to mind words such as tradition and continuity, according to Dekkers. However, Bayer can actually look back on 150 years of ongoing change and renewal. "A company cannot exist in the long term without changing and adapting," emphasizes Bayer's CEO.
The company was founded as "Friedr. Bayer et comp." on August 1, 1863 by business-man Friedrich Bayer and dyer Johann Friedrich Weskott in the Barmen district of Wuppertal. Bayer initially produced synthetic dyestuffs but the range of products grew significantly over the years. In 1881, the company was made a joint stock corporation - "Farbenfabriken vorm. Friedr. Bayer & Co." - and developed into an international chemical company. In the course of expansion, Bayer relocated its headquarters to Leverkusen in 1912. Following the First World War, in 1925, the company became part of the I.G. Farbenindustrie AG conglomerate. It was re-established as an independent company named "Farbenfabriken Bayer AG" in 1951.
The pace of change picked up significantly following Bayer's 125th anniversary in 1988. The company shifted its focus more towards its core activities, resulting in the sale of subsidiary Agfa in 1999. In 2005, Bayer then spun off significant parts of its traditional chemicals business under the name Lanxess. At the same time, the health care and agriculture businesses - referred to as the life sciences - were systematically expanded, especially with the acquisitions of Aventis CropScience (2001) and Schering AG, Berlin, Germany (2006). "Thanks to our innovative strength and our ability to adapt constantly to market changes, Bayer now holds leadership positions in all its business areas," says Dekkers. The spirit of inventiveness and the will to succeed form the bridge spanning the company's history from its origins 150 years ago to today.
Celebrating with employees, neighbors, partners, customers and the scientific community
"All of that is reason enough to celebrate this anniversary in a befitting way," says Michael Schade, Head of Corporate Communications. Bayer is planning a whole series of events next year. These will focus on its more than 110,000 employees all over the world. Celebration events are also planned for the company’s neighbors, customers and partners and a symposium is to be held for the scientific community in the fall.
In the area of corporate social responsibility, too, Bayer will set a new signal to mark its anniversary. Each year, the company supports some 30 volunteering projects involving its employees and retirees in Germany. In 2013, this support is to be expanded significantly and will also be offered worldwide.
"It goes without saying that we want to use our anniversary to make the Bayer name even better known across the world," continues Schade. One of the projects being prepared is a traveling exhibition that will visualize topics related to health care, agriculture and high-performance materials. This exhibition is scheduled to visit more than 20 sites throughout the world. A further highlight will be an airship displaying the Bayer Cross that will travel to all continents during 2013. Various publications are also being prepared. These will provide detailed and sometimes surprising insights into the inventor company. "We've got a lot planned for the coming year but we don't want to reveal everything just yet," says Schade. The company will publicize details about the planned activities next year.
Bayer: Science For A Better Life
Bayer is a global enterprise with core competencies in the fields of health care, agriculture and high-tech materials. As an inventor company, it sets trends in research-intensive areas. Bayer’s products and services are designed to benefit people and improve the quality of life. At the same time, the Group aims to create value through innovation, growth and high earning power. Bayer is committed to the principles of sustainable development and acts as a socially and ethically responsible corporate citizen. In fiscal 2011, the Group employed about 112,000 people and had sales of €36.5 billion. Capital expenditures amounted to €1.7 billion, R&D expenses to €2.9 billion.
January 7, 2013 Bayer
参考 2012/1/25 BASF、ドイツに年産30万トンのTDIプラントを建設
Bayer gets the green light to build and operate the new world-scale TDI plant in Dormagen
Following a detailed appraisal, the Cologne district authority has granted Bayer MaterialScience the permit to build and operate the new high-tech facility for the production of the chemical TDI (toluene diisocyanate) at Chempark Dormagen. TDI is needed as a precursor for the manufacture of flexible polyurethane foams to make products such as high-quality foams for mattresses, chairs and car seats.
The Polyurethanes Business Unit is the largest in Bayer MaterialScience and accounts for around 50 % of the company’s sales. With about 4.900 employees around the world and 2011 sales of around 5.435 billion €, the Polyurethanes Business Unit leads the global PU industry.
“We are delighted that the approval process
has been successfully completed and we can press ahead with our construction
work as planned,” says Dr. Joachim Wolff, who is the member of Bayer
MaterialScience’s Executive Committee responsible for the Polyurethanes Business
Unit. “This innovative high-tech process marks the start of safe and
eco-friendly world-scale polyurethane production that makes the best possible
use of energy and resources. Compared with a conventional plant with the same
capacity, the new facility will reduce energy consumption by up to 60 percent
and require as much as 80 percent less solvent. This will also give us a
decisive competitive edge,” he adds.
With an annual capacity of 300,000 metric tons, the future world-scale plant is a key part of a long-term investment strategy at Bayer MaterialScience to turn its Dormagen site into a global technology center for the development and production of polyurethanes. The employees who will be working at the new TDI facility started their training last spring. They include 15 new employees who are working alongside staff at the current pilot plant and receiving intensive instruction.
Construction progress on schedule
The approval authorities gave the go-ahead for the provisional start of construction in February 2012. Since then, work at the giant construction site has been progressing in leaps and bounds. In November, for example, the construction team reached a key milestone when the TDI plant’s 90.5 metric ton distillation column – a cylindrical steel structure – arrived at Chempark by truck. “If progress on site continues at this pace, there is nothing standing in the way of us completing and commissioning the plant midway through 2014,” says Dr. Steffen Kühling, who is in charge of production and technology in the Polyurethanes Business Unit.
Site’s long-term future secure
The construction phase of the project will create between 500 and 1,500 additional jobs. Many contractors come from the region, such as the piping planning firm Keynes from Neuss and equipment manufacturers Quast and Dormagen-based APL. Later on, when the facility is up and running, companies from Dormagen and the surrounding area will be involved in maintenance, construction and repair work, plus the provision of technical services in the area around the new plant. The project also safeguards existing upstream and logistics jobs at the site. The same applies to numerous additional jobs associated with TDI production in the value-added chain in North Rhine-Westphalia and Germany.
Detailed notification of approval
When providing notification of approval, the authorities give a detailed explanation of the reasons that led to their decision. The process involves examining the prerequisites for approval, summarizing and evaluating the environmental impact assessment and, last but not least, evaluating the safety concept. Any objections raised are also taken into account. The authorities granted the permit for the project following a detailed appraisal of all aspects involved and based on the documentation submitted.
Comprehensive information for all interested parties
From the start of the TDI project, Bayer MaterialScience has ensured intensive dialogue with the local community and stakeholders. All local residents, environmental associations, organizations, authorities and political representatives can still benefit from open dialogue with the company about the project.
July 25, 2013 Bayer
Bayer to use CO2 commercially as a new raw
Greenhouse gas for production of high-quality plastics / Process offers ecological and economic advantages / Successful two-year test phase
Following a successful test phase, Bayer is aiming to commercialize the use of the greenhouse gas carbon dioxide as a new raw material for plastics. The company has started the planning process for the construction of a production facility at its site in Dormagen, Germany, where CO2 will be used to produce a precursor for high-quality foam. The objective is to initially make larger quantities of this precursor available to selected processors from 2015.
The use of carbon dioxide benefits the environment. CO2 replaces a portion of the fossil raw materials, such as petroleum, that would otherwise be used exclusively. At the same time, Bayer expects the new process to provide economic advantages over the conventional production method.
Waste gas turning into profitable raw material
“CO2 is taking on a new light: The waste gas is turning into a useful and profitable raw material. That makes us one of the first companies worldwide to take an entirely different approach to the production of high-quality foams,” says Patrick Thomas, CEO of Bayer MaterialScience.
The materials manufacturer collaborated with partners from industry and academia to develop the process, which has been tested intensively over the last two years. As part of the publicly funded research project “Dream Production”, a pilot plant at Bayer’s main site in Leverkusen produced smaller quantities of the precursor polyol, in which the CO2 is chemically bound.
The substance is used for the production of
polyurethane foam. This high-quality material can be found in many everyday
items, including upholstered furniture, automotive parts, refrigeration
equipment and insulation material for buildings. In internal tests, the new
foams show at least the same high quality as conventional material based
entirely on fossil fuels.
Mattresses made with CO2
“After successfully completing the test phase, we are now launching Stage 2 with the target of commercialization,” says Thomas. The first use of the new CO2-based flexible foam will be for the production of mattresses.
The planned production facility in Dormagen will have a capacity of several thousand metric tons. “This will not be enough to accommodate the market demand, of course. It is Bayer’s patent-registered technology and we have not yet decided to be the exclusive producer of this innovative polyol. Licensing might also be a possibility,” adds Thomas.
CO2 as a new source of carbon
From climate offender to useful material
More than 30 billion tons of CO2 are released
into the atmosphere every year. But this greenhouse gas need no longer be just a
climate-damaging waste product. Researchers headed by Bayer have found a way to
use carbon dioxide as a building block for premium plastics.
Christoph Gürtler carefully pours out a thick, crystal-clear liquid and tips a yellow chemical into it. Then he adds just a little water to the beaker, a couple drops of accelerant and gives it all a good stir. After a few seconds, a green mass rises to the top. It overflows slightly, then hardens: The experiment is a success!
“This is a common foam,” Gürtler says. “We’ve now made ground-breaking progress with the help of a new ingredient,” says the Bayer researcher, holding up the glass containing the clear substance. “There is an entirely new raw material in here: carbon dioxide.”
Until now, polyurethane foam of this kind – like most things in the chemical industry – has been manufactured differently, namely using fossil resources: petroleum, natural gas, coal, biomass. These four substances are the starting point for some 40 basic chemicals and more than 40,000 chemical products. But they have disadvantages: Supplies are limited, they are getting increasingly expensive and they consume a lot of energy when treated in refineries.
Substitute for petroleum
But CO2 is another story. It is virtually ubiquitous and available in unlimited quantities. Like oil, it incorporates the important element carbon, on which the entire field of chemistry depends. In other words, this climate-killer has what it takes to be useful, and Bayer MaterialScience is working on a number of projects with partners in industry and academia.
The Dream Production research initiative has made the most progress. It is the proof that incorporating CO2 is not only possible in the lab, but also on an industrial scale. The carbon dioxide comes from a power plant near Cologne, Germany, operated by energy company RWE. There it is removed from the flue gas and liquefied for transportation.
In a pilot plant in nearby Leverkusen, Bayer MaterialScience has been using the carbon dioxide since early 2011 to manufacture samples of the polyurethane component polyol. The test foams made from this substance are just as good as those produced the conventional way using only petroleum.
“This new process was made possible by a scientific breakthrough,” explains project manager Christoph Gürtler. “We finally succeeded in finding the right catalyst after the scientific community spent decades searching for it.” A catalyst is required to set the reaction in motion. In other words, the CO₂ has to be given a nudge, because it is chemically inert and does not react readily on its own with other substances.
The catalyst also limits the energy consumed by the reaction. As a result, the entire process is ecologically sustainable, as demonstrated by a complex study conducted by RWTH Aachen University, another partner on the project. “Our calculations indicate that the new process requires less energy in its life cycle and thus also emits less CO₂,” explains Professor André Bardow of the Institute of Technical Thermodynamics.
If the new process continues to produce good results, Bayer intends to start industrial production in 2015. The first end product to be launched on the market will be mattresses made from CO₂-based flexible foam. Subsequently, other types of polyurethane are also to be manufactured by this method.
“Large segments of the industry are already showing significant interest in the innovative material,” says Frank Grunert, head of Polyurethane Marketing at Bayer MaterialScience. Bayer is now looking for partners along the value-added chain to the consumer as the project moves to market maturity.
And research continues as well, for instance in another project called CO₂RRECT that reaches far into the future. It focuses on combining carbon dioxide and renewable energies, or more specifically excess electricity from wind turbines, for which storage capacities are insufficient. The energy can, however, be stored chemically in the form of hydrogen. An electrolysis process, run on this excess energy, produces the hydrogen.
Wind power and carbon dioxide
But the project partners headed by Bayer MaterialScience envision much more: They want to combine hydrogen with power plant CO₂ to obtain chemical intermediates, which could be used in turn to produce polyurethane or the performance plastic polycarbonate.
“Our ultimate goal is to manufacture a broad range of plastics from CO₂, including not only coatings and fibers,” says Gürtler, “but also plastics made entirely of alternative raw materials. The first products containing no petroleum at all – that’s our vision.”
March 5, 2014
Bayer acquires DuPont aniline plant in Texas
Bayer MaterialScience has acquired DuPont's aniline production facility in Baytown, TX.
With the acquisition, Bayer assumes responsibility for the facility's direct operating personnel. Financial terms were not disclosed.
Aniline is a primary feedstock used to
manufacture methylene diphenyl diisocyanate (MDI), a versatile chemical used to
produce rigid polyurethane foams for insulation in the construction industry, as
well as coatings, adhesives, sealants, elastomers and binders.
The aniline facility is located within Bayer's Baytown plant, the company's largest manufacturing facility in the U.S. and a critical asset in its global manufacturing portfolio. Adding aniline production fully integrates the Baytown plant along the MDI value chain for enhanced production flexibility.
"North America is poised for strong MDI growth driven by recovery in the construction market, energy code advancement and home comfort trends," said Craig Caputo, vice president of polyurethanes and regional product manager for Bayer MaterialScience. "This strategic acquisition positions Bayer to meet this growing demand while further strengthening our leadership in the polyurethane industry."
The acquisition also reinforces Bayer's commitment to the Baytown facility, according to company officials. Over the last two years, Bayer has invested roughly $120 million in process, reliability, quality and environmental improvements at the plant, which in addition to MDI produces toluene diisocyanate (TDI) and polycarbonate.
DuPont is a leading producer of aniline intermediates and derivatives. We are one of the world's largest merchant producers of aniline and the only U.S. producer marketing nitrobenzene.
DuPont licenses state-of-the-art hydrogentation technology for Aniline via hydrogenation of nitrobenzene using a proprietary liquid phase process. Aniline produced by the liquid phase process minimizes by-products and offers capital and variable cost savings vs. other technologies.
|Life Science businesses||
|EBIT before special items||2,552||1,421||1,801||5,774||429||49||-479||5,773|
|EBITDA before special items||3,490||1,844||2,248||7,582||1,072||222||-475||8,401|
Bayerは2003年末までに、Bayer CropScience、Bayer Healthcare、Bayer Polymers、Bayer Chemicalｓの４社と、サービス会社3社の合計 7社を分社化したが、2004年7月にBayer Chemicalsの大半とBayer Polymersの一部を新会社 Lanxess として分離し、2005年に上場した。
RubberやRubber chemicals 事業はLanxess に移された。
2006/9/6 Bayer と Lanxess
A strong backbone – Industrial Operations
Safe plants, reliable raw material supplies, efficiency in managing resources: These activities and many more form the basis for smooth operations at Bayer MaterialScience. They are combined under Industrial Operations, which supports the business units and produces basic chemicals, such as chlorine, sodium hydroxide solution and hydrochloric acid. Industrial Operations generated EUR 680 million in sales in 2013 with some 1800 employees.
Coatings, Adhesives, Specialties (e.g. Desmodur™, Bayhydur™, Dispercoll™)
Polycarbonates (e.g. Makrolon™, Bayblend™; Specialty Films, e.g. Makrofol™/Bayfol™)
Polyurethanes (e.g. Multitec™, Baydur™, Bayflex™, Baypreg™, Vulkollan™)
Thermoplastic Polyurethanes (e.g. Desmopan™/Texin™; Specialty Films e.g. Platilon™)
|Apec™||Apec® is the brand name for an advanced copolycarbonate. With its unique combination of high heat reistance, thoughness, transpareny it is unlike any other engineering thermoplastic. These properties, along with good dimensional stability, weatherability and flowability, allow Apec® to be utilized as a replacement for glass, metal or standard polycarbonate in high-heat applications|
|Bayblend™||Bayblend® is the trade name used by Bayer for its product line of amorphose, thermoplastic polymer blends based on polycarbonate (PC) and acrylonitrile butadiene styrene (PC+ABS blends) as well as acrylonitrile styrene acrylate (PC + ASA blends). Their property profiles ca be customized by varying the compsition of the blend. The particular strengths of Bayblend® are its balanced combination of heat resistance, toughness ans stiffness and its excellent processing characteristics. The unique combination offers an ideal conolidation of mechanical and thermal properties for appliances, automotive and transportation, electrical, consumer products, medical, electronics, IT and communication applications.|
|Baycusan™||Brand name for high quality polyurethane dispersions as film formers and powder as sensory additive for cosmetic formulations|
|Baydur™||Polyurethane integral-skin foam and molding systems for appliance housings, medical equipment, sports goods, sanitary items and furniture|
|Bayflex™||Family of elastic polyurethane systems with customizable properties for a range of applications|
|Bayhydur™||Polyurethane dispersions for waterborne coatings in automotive, industrial, furniture or construction and other applications|
|Desmodur™/Desmophen™||Polyisocyanates and polyols for the production of coatings in automotive, industrial, corrosion protection, flooring and other applications and binders, rigid and flexible foams|
|Desmopan™||Thermoplastic polyurethanes for a wide variety of high-tech applications|
|Makrolon™||Makrolon® is the brand name for our polycarbonate. Its special features are its high transparenc, heat resistance, toughness and dimensional stability, a high crees modulus and good electrical insilation properties. Bayer offers a broad portfolio of Makrolon® resins. These include general purpose, lighting, medical and food contact, flame-retardant, impact-modified and glass-fiber reinforced grades. These grades can be used for injection molding, extrusion and blow molding, in a range of markets including automotive and transportation, construction, electronics, medical, lighting and optical data storage.|
2014 年9 月18 日– バイエルグループ（本社：ドイツ レバクーゼン、社長：マライン・デッカーズ）は、今後は完全にライフサイエンス事業（ヘルスケアおよび農業関連）に注力し、素材科学事業を別会社として上場させる予定である。これによりバイエルは、人と動物、そして作物の健康における世界有数の企業として自社を位置づけていく。監査役会は18 日のドイツ・バイエル社経営委員会の提案を全会一致で承認した。デッカーズは「私たちの意図はライフサイエンス分野における世界有数のイノベーション企業であるバイエル、そしてポリマー材料の分野における中心的企業であるマテリアルサイエンスという、2つのグローバル企業を創り出すことです」と発表した。さらにデッカーズは、両社はそれぞれの事業分野で成功を収めるための非常に明るい展望を持っていると述べた。社員数はバイエル全体およびドイツ国内において、今後数年にわたって同レベルを維持する予定である。
独バイエル社長 マライン・デッカーズ氏 Dr. Marijn E. Dekkers
2015/9/2 Bayer のMaterial Science 部門、Covestro として分離独立
1985〜 General Electric
1995〜 Allied Signal
2000〜 COO of Thermo Electron Corporation (2002 President and CEO)
2010〜 Bayer AG (2010 CEO)
2014/5/10 Bayer、米 Merckの大衆薬事業を買収
Morgan Stanley & Co. and Ducera Partners are acting as financial advisors, and Wachtell, Lipton, Rosen & Katz is acting as legal advisor, to Monsanto.
---May 19, 2016 Reuters
Bayer makes move for Monsanto in global
German drug and chemicals giant Bayer AG has made an unsolicited takeover offer for Monsanto Co, the world's biggest seed company, as high inventories and low commodity prices spur consolidation in the global agrichemicals industry.
Monsanto disclosed the approach on Wednesday before Bayer confirmed its move, though neither released proposed deal terms.
With Monsanto worth $42 billion by market capitalization, an acquisition would likely be bigger than ChemChina's February deal to buy Swiss agrichemicals firm Syngenta AG for $43 billion - a target Monsanto itself pursued last year - and could face U.S. antitrust hurdles.
Monsanto said in a statement its board is reviewing the proposal, which is subject to due diligence, regulatory approvals and other conditions. There is no assurance that any transaction will take place, it said.
Bayer, which has a market value of $90 billion, said in a brief statement that its executives recently met executives of Monsanto to privately discuss a negotiated acquisition. A further statement will be made as appropriate, it said.
The proposal comes as Chinese state-backed ChemChina's deal for Syngenta faces intensive regulatory review in the United States over concerns about the security of U.S. food supply. The deal is the largest foreign acquisition ever by a Chinese company, as Beijing seeks to secure the country's own food supply.
Any deal between Bayer and Monsanto, meanwhile, could raise U.S. antitrust concerns because of the overlap in the seeds business, particularly in soybeans, cotton and canola, antitrust experts have said.
However, spurning a deal with Bayer over concerns a tie-up might not receive antitrust clearance could also pose challenges for Monsanto - its own bid for Syngenta last year would have meant significant expansion in seeds.
Bayer, the inventor of aspirin and maker of Yasmin birth control pills, is a much more diversified company than Syngenta or Monsanto, with a major life sciences business. Bayer's crop science division has businesses in seeds, crop protection and non-agricultural pest control, potentially complementing Monsanto's seeds assets.
BAYER, BASF AMBITIONS
Both Bayer and its German rival BASF SE have been looking to build scale in agrichemicals in order to remain competitive. But the role of Monsanto in any deal has been a sticking point.
Monsanto approached Bayer earlier this year to express interest in the latter's crop science unit, in the form of an acquisition or joint venture, sources told Reuters in March.
In a sign of how quickly Bayer turned the tables on Monsanto, the latter's President and Chief Operating Officer, Brett Begemann, dismissed speculation of the company being a takeover target for Bayer or BASF at an investor conference in New York earlier on Wednesday.
"It's all wild speculation because there's nothing there," he said.
Both Bayer and BASF had been exploring tie-ups with Monsanto for several months, but valuation concerns have made a deal elusive, people familiar had previously told Reuters.
Bayer is ranked No. 2 in crop chemicals, with an 18 percent market share, according to industry data. The largest, Syngenta, has a 19 percent share.
Monsanto is the leader in seeds, with a 26 percent market share, followed by DuPont, with 21 percent. DuPont agreed last year to merge with Dow Chemical.
Morgan Stanley & Co and Ducera Partners are acting as financial advisors to Monsanto, the company said in its statement, while Wachtell, Lipton, Rosen & Katz is acting as legal advisor.
Jan 12, 2017
Bayer says had productive meeting with Trump over Monsanto deal
German drugs and pesticides maker Bayer, which will need regulatory approval for its $66 billion deal to buy U.S. seeds giant Monsanto, said company chief executives had a productive meeting with U.S. president-elect Donald Trump.
Trump talked to Bayer Chief Executive Werner Baumann, Monsanto CEO Hugh Grant and some of their advisers in New York, his transition team said on Wednesday, part of meetings before he takes office later this month.
"It was a productive meeting about the future of agriculture and the need for innovation," a Bayer spokesman said on Thursday, declining to provide more details for the moment.
The fate of major proposed mergers, not just Bayer-Monsanto but also Dow Chemical and DuPont, which plan to spin off their combined agriculture businesses, will be decided by Trump's nominees to lead antitrust enforcement at the Justice Department and the Federal Trade Commission.
Antitrust and industry experts see the regulatory hurdles to a deal as manageable because Bayer's main business in agriculture is pesticides while Monsanto's focus is on genetically modified seeds.
Under such a scenario, Bayer could at worst be asked to divest soybean, cotton and canola seed assets as well as LibertyLink-branded crops that are resistant to its glufosinate herbicide, an important alternative to Monsanto's Roundup Ready seeds.
But uncertainty remains over what regulators will make of the merged group's grip of the overall agriculture market, with a combined market share in seeds and pesticides of about 28 percent.
Critics argue this dominant market position will allow it to crimp research and development efforts. Bayer has said that much needed innovation will come from combined seeds-chemicals offerings and that it needs to merge to compete against other integrated suppliers such as the future Dow-Dupont.
The meeting took place on the day of Trump's first news conference as president-elect, which also saw him slam drug companies as "getting away with murder" in what they charge the government for medicines.
Bayer, the inventor of aspirin, is among the world's top 20 pharmaceutical groups, with products including Yasmin birth-control pills and stroke prevention drug Xarelto.
January 18, 2017
Bayer-Monsanto Pledge Investment, Jobs After
Bayer AG and Monsanto Co. promised President-elect Donald Trump $8 billion of investment in the U.S. and thousands of new jobs should the companies’ planned merger, the biggest-ever in agriculture, clear regulatory approvals.
Bayer Chief Executive Officer Werner Baumann promised to add 3,000 jobs at Monsanto while keeping its headquarters in St. Louis after the deal is completed, Trump spokesman Sean Spicer said Tuesday.
Both companies had previously announced their intention to keep the location of the Monsanto offices, but the commitment on jobs is new, and follows a visit last week by both Baumann and Monsanto CEO Hugh Grant to Trump and his aides in New York. The CEOs said in a joint statement that "several thousand new high-tech well-paying jobs" will be added after the integration of the two companies.
U.S. businesses are facing more pressure to show that they’re creating American jobs ahead of Friday’s scheduled inauguration of Trump, who made the issue a signature of his campaign. Earlier on Tuesday, he praised General Motors Co. for a $1 billion American investment plan, having criticized the company earlier in January for importing some models from Mexico.
On Tuesday, Wal-Mart Stores Inc. also boasted about job growth. Ford Motor Co. and Fiat Chrysler Automobiles NV announced spending plans last week that Trump lauded.
The proposed $66 billion takeover of Monsanto by Germany’s Bayer would create the world’s largest producer of pesticides and genetically modified seeds. The merged company expects to spend about $16 billion in research and development in agriculture in the next six years, with at least half of the investment made in the U.S., Bayer and Monsanto said in their statement Tuesday. The two companies spent about $5.9 billion combined on R&D in 2015, data compiled by Bloomberg show.
Trump rode to his election victory partly on strong backing from rural voters, which could increase the President-elect’s desire to bring an economic turnaround for those supporters. A year ago, Monsanto announced that it would shed 3,600 jobs, or about 16 percent of its global workforce, in a bid to lower costs. The company is already the world’s biggest seed producer.
Agricultural companies could also come under increased scrutiny as a wave of mega-deals announced in the past year has the potential to transform the industry. Critics have raised antitrust concerns about Bayer-Monsanto, but the companies have argued the merger will speed innovation and help farmers increase their yields.
The National Farmers Union, the second-biggest U.S. farm group, is among those that oppose the deal. In a statement Tuesday, it said the meeting between the CEOs and president-elect “is deeply disturbing if it leads to an approval of the Bayer-Monsanto acquisition by the incoming Trump Administration.”
Still, the meeting is “positive” for getting U.S. approval, though the merger still needs regulatory approval in other countries, Chris Shaw, an analyst at Monness Crespi Hardt & Co. in New York, said by phone.
Bayer and Monsanto’s plan to stay and invest in the U.S. Midwest is key to its business, since it would market to farmers, but also lines up with Trump’s rhetoric, said Jason Miner, an analyst at Bloomberg Intelligence in Skillman, New Jersey.
“It’s good politics and good business strategy at once,” Miner said.