Bayer 2007/2/6

Bayer MaterialScience intends to expand annual capacity of TDI production facility in Shanghai to 300,000 tons
Innovative production technology means much lower costs

Bayer MaterialScience AG intends to boost the annual capacity of the planned plant for producing
toluene diisocyanate (TDI) in Shanghai from 160,000 to 300,000 tons. This Bayer subgroup is harnessing an innovative process technology in the construction that, among other things, enables investment and energy costs to be dramatically reduced. "This expansion reinforces our commitment to one of the world's most important growth regions," explained Chairman of the Bayer Board of Management, Werner Wenning. Bayer MaterialScience is planning to invest a total of around US$ 1.8 billion at the Shanghai site by 2009.

The integrated Shanghai site is intended to become a central base in Bayer MaterialScience's production network in the Asia-Pacific region. The approval procedures for expanding capacity have already been initiated. "Our new world-scale plant is designed to supply customers in the region's growth markets in the long term and is scheduled to be ready in 2009 as planned,"
said Patrick Thomas, Chairman of the Board of Management of Bayer MaterialScience AG. The company intends to use part of its production capacity to supply the fast-growing markets in Eastern Europe and the Middle East until new capacities are in place.

Bayer MaterialScience expects its newly developed TDI process technology to
cut investment costs by some 20 percent compared with conventional processes. The process - known as gas phase phosgenation - has already been successfully trialed in a company pilot plant with an annual capacity of 30,000 tons.

"This new technology sets new standards in safety and contributes to a significant reduction in the use of solvents,"
explained Peter Vanacker, head of the Polyurethanes Business Unit. "Compared with optimized conventional processes, in operational terms this results in volume-related energy savings of around 40 percent and a corresponding reduction in costs and environmental impact. Our goal is to use this enlarged capacity to provide sustainable support for our customers' growth. We intend to build on our leading position in the world market for polyurethanes with top-quality products, world-scale facilities and optimized cost structures," added Vanacker.

The TDI plant in Shanghai forms part of Bayer MaterialScience's long-term investment planning aimed at efficient expansion of its international production network to cover rising demand. The company expects consumption of TDI to grow by around 4 percent a year, driven mainly by continued strong demand for upholstered furniture, mattresses and car seats.

May 31, 2007 Bayer

Bayer CropScience agrees to acquire US cotton seed company Stoneville for US-$ 310 million
  Acquisition of leading US cotton business expected to bolster growth strategy

Bayer CropScience announced today that it has entered into an agreement to purchase Stoneville Pedigreed Seed Company, a leading US provider of cotton seeds, from Monsanto Company for a total purchase price of US-$ 310 million (approximately EUR 230 million). The agreement was signed on May 31, 2007. This acquisition is expected to enhance the fast-growing US cotton seed business of Bayer CropScience, currently the second largest cotton seed supplier in North America. The acquisition is subject to the approval of the US competition authorities.

"As part of our long-term strategy for innovation and growth, we intend to strengthen the position of Bayer CropScience in the seeds market. The acquisition of the Stoneville activities in the US is a significant step in further expanding our successful cotton seed business, which forms part of our core seed crops along with canola, rice and vegetables"
says Werner Wenning, Chairman of the Board of Management of Bayer AG.

In acquiring the US assets of Stoneville, Bayer CropScience will gain access to additional high performing cotton products with insect-resistant and herbicide-tolerant Monsanto traits. The new germplasm and the geographic reach of the Stoneville business East of Texas ideally complement Bayer CropScience's cotton seed and trait business. The acquisition will also bring in skilled and knowledgeable staff as well as state-of-the-art breeding and seed processing facilities in the US.

The business to be acquired by Bayer CropScience represents a turnover of about US-$ 45 million (approximately EUR 36 million) as per Stoneville's fiscal year 2005/2006. The acquisition does not include Stoneville's NexGen
franchise, a regional cotton seed business in Texas, and other assets related to the NexGen business.

Says Prof. Dr. Friedrich Berschauer, Chairman of the Board of Management of Bayer CropScience: "Through the acquisition of Stoneville, we can offer an even broader cotton seed portfolio to US farmers, strengthening our offering of desired traits, high yield and excellent fiber quality. Through this acquisition we are also assured of having the critical mass in the cotton seed business to continue to bring innovative products to the market."

Led by its flagship FiberMax® brand, Bayer CropScience has seen its US cotton seed business growing strongly over the past years. The purchase of the US Stoneville business is a further continuation of the company's successful strategy of growing its presence in the US cotton market via new product development and organic growth as well as acquisitions. Over the last two years, Bayer CropScience has acquired the assets of US companies Associated Farmers Delinting, Inc. (AFD), a regional cotton seed production and processing company based in Littlefield, Texas, and California Planting Cotton Seed Distributors (CPCSD), a developer, producer and distributor of high quality cotton seeds, enabling access to new regional markets in the US and to considerable storage and processing capacities. In December 2006, Bayer CropScience also purchased the cotton assets of Reliance Genetics LLC of Harlingen, Texas.

Bayer CropScience AG, a subsidiary of Bayer AG with annual sales of about EUR 5.7 billion (2006), is one of the world's leading innovative crop science companies in the areas of crop protection, non-agricultural pest control, seeds and plant biotechnology. The company offers an outstanding range of products and extensive service backup for modern, sustainable agriculture and for non-agricultural applications. Bayer CropScience has a global workforce of about 17,900 and is represented in more than 120 countries. This and further news is available at:

Jun 1, 2007 AEST

Bayer keen on consumer health buys

Bayer AG is keen on further acquisitions of over-the-counter medicines一般用医薬品 as part of a strategy to balance "volatility" within its larger prescription drugs business, its head of healthcare said on Thursday.

"We continue to believe that, with discipline, we can find attractive OTC assets," Arthur Higgins told Reuters on the sidelines of the annual meeting of the European Federation of Pharmaceutical Industries and Associations.

Higgins is the new president of the European industry group.

Germany's Bayer, which invented Aspirin more than a century ago, boosted its healthcare business last year with the 17 billion euros ($A27.78 billion) acquisition of Schering, enabling it to compete more effectively with industry giants.

Higgins said investors were now waking up to the potential of the company's pipeline of specialist medicines for cancer and other serious diseases, which would boost profitability.

But he aims to balance this by also growing the more stable consumer health operation, adding that there were no plans for rationalising the overall business.

"We've just completed an analysis and it is not our intention to change our healthcare portfolio at this point of time," he said.

Last year, Bayer's total healthcare division accounted for some 40 per cent of group sales and nearly half of underlying operating profit - and industry analysts expect healthcare to be an increasingly important driver as new drugs fuel growth.

Within healthcare, Higgins said he wanted to see prescription pharmaceuticals remaining at no more than 60-70 per cent of the total, which he acknowledged was likely to require additional scaling up of consumer products.

He noted Bayer had already proved itself a leader in consolidating the non-prescription drugs industry by acquiring Roche Holding AG's OTC drugs business.

He declined to comment on specific targets or say whether Bayer might be interested in Pharmaton, Boehringer Ingelheim's OTC unit, which the private German drugmaker had planned to sell to a US firm, until that sale was scrapped in February.

Bayer earlier this year set a target to boost underlying EBITDA margins in its healthcare unit to 24 per cent in 2007 from 22.3 per cent in 2006.

The division's sharp improvement in profits in the first quarter, on the back of strong sales of drugs like Betaseron for multiple sclerosis and synergies from the integration of Schering, mean some analysts think that target will be beaten.

There is widespread speculation that Bayer could revise up its margin target when it holds a healthcare investor day on June 18. Higgins would not say whether this was the case but he noted the healthcare business had a track record of surprising on the upside.

"We're very pleased that we have consistently, over the last three years been able to under-promise, over-deliver - and we want to continue to do that," he said.

Bayer's imaging business suffered a setback last week when the US Food and Drug Administration said contrast agents used to make magnetic resonance imaging (MRI) scans easier to see should carry a new, strong safety warning.

The warning would alert doctors that certain patients with kidney and liver conditions are at risk of a potentially fatal skin disease called nephrogenic systemic fibrosis.

But Higgins said the problem, which affects Bayer's Magnevist and other agents, would not have a material impact.

Jun 1, 2007 Reuters

Bayer in spotlight after Sabic's GE Plastics buy

Bayer AG Chief Executive Werner Wenning has always said the company's plastics business is an important part of the drugs and chemicals conglomerate.

But for investors, the question is for how long?

The fact that Saudi Basic Industries Corp (Sabic) was willing to pay $11.6 billion to snatch GE Plastics last week in a crowded race suggests rising appetite for basic chemicals business, despite rising competition.

The price tag, which was above market expectations, is fuelling a market rerating for similar assets at peers such as Bayer, Dow Chemical Co and BASF AG.

For Bayer, which vies with GE Plastics for the world's top spot in plastics via its material science unit, the takeover is not an immediate threat because Sabic is not a player out to drive prices down for the sake of market share, analysts say.

But it highlights the question of how the plastics business fits with the rest of the group as
Bayer transforms itself into a healthcare player following its $23 billion purchase of Schering AG last year.

The only thing that doesn't fit from the logic point of view to a life science company is Bayer Material Science," said Boris Schakowski, a fund manager at Union Investment.

"In my point of view ... they should divest it because it may not fit to Bayer any more in a couple of years. The question will then be a straight sale or IPO," Schakowski added.

Last year, the material science unit accounted for 35 percent of group sales, down from 38 percent a year ago, while those from the healthcare unit -- with only a partial contribution from Schering -- rose to 40 percent from 32 percent.

Profit margins at the materials unit also fell.

Analysts at Citigroup forecast the unit's core margin will decline to 13.4 percent this year and to 11.7 percent next year from 18.7 percent in 2005.
By contrast, in the healthcare unit UBS analysts anticipate its profit margin rising to 25 percent in 2008 from 19 percent in 2005.

With GE fetching 1.8 times 2006 sales and 10 times core profit for its plastics unit, some investors say Bayer should sell the business while prices are high.

"With a lot of emphasis on healthcare and agrobusiness, the chemicals unit is somewhat reduced in its strategic importance," said Sasa Todorovic, a fund manager at Frankfurt Trust.

Andrew Benson, an analyst at Citigroup, said in a recent note if Bayer could achieve a similar price as GE Plastics it would value the asset at between 4 and 8 euros per share above his estimate.

Analysts say Bayer could use the proceeds of a disposal to grow its pharma business to become a top 10 player in the world and also possibly to return some funds to investors.

Yet investors also say Bayer still needs the strong cashflows generated by its plastics unit to pare down debt, close to 13 billion euros at the end of March, for the Schering acquisition.

"On a long term (view) this will be the most likely scenario," Todorovic said.

Analysts have warmed to Bayer's stock as they increasingly view it as more of a drugs than a chemicals play following the Schering buy.

The stock -- up 0.8 percent at 53.94 euros by 1050 GMT on Friday -- has risen some 30 percent this year, outshining a 15 percent gain in the pan-European DJ Stoxx chemicals sector and a flat DJ healthcare index.

But its conglomerate status and exposure to the volatile chemicals business still means the stock trades at a discount to its peers, despite its strong pipeline of experimental drugs in late stage trials.

According to UBS, Bayer trades at 8.3 times enterprise value/core profit and 12.5 times 2008's forecast earnings, a discount of about 15 to 20 percent to the healthcare and chemicals sectors.

Some said that discount should narrow.

"Investors need to have a fresh view now and think about basic chemicals in a different way as strategic investors (private equity firms) are willing to pay more for the infrastructure," Schakowski said.

June 18, 2007 Bayer

Bayer MaterialScience to build up a world-scale plant for polymer polyols using a new technology
  Commissioning scheduled in 2008 /
  Forward-looking production process delivers optimized products /
  Significantly lower energy costs

In close cooperation with Bayer Technology Services GmbH, Bayer MaterialScience AG has developed an innovative technology for the manufacture of polymer-filled polyether polyols that delivers significantly better products than the conventional process. The innovative technology has already been successfully tested on a multi-ton scale in a technical service laboratory. The new process is to be used on a world scale for the first time in a PMPO(polymer polyol ) production facility with an annual capacity of 60,000 tons. It is due to be commissioned at the end of 2008 and shall be constructed either in Dormagen, Germany, or in Antwerp, Belgium. At both sites, Bayer MaterialScience already manufactures polyether polyols, one of the basic components required to produce polymer polyols. Hence, consistent use can be made of synergies, thereby further increasing the facility's efficiency. A final decision about the location has not yet been made.

This new production process keeps
the amounts of volatile organic compounds (VOCs) in the end product at very low levels that were impossible to achieve with the technologies used to date. The much lower operating temperature at the processing stage of the continuous operation means that the PMPOs are only very slightly discolored. In addition to the improved product properties, Bayer MaterialScience expects a 25 percent reduction of investment costs for construction work and a decrease in energy consumption when operating production facilities by a similar percentage rate.

PMPOs are utilized throughout the world, primarily for the production of flexible polyurethane foam, which is used in large quantities in upholstered furniture, mattresses, and car seats. The reduced VOC content of the PMPOs is particularly important for applications in vehicle interiors. One reason for this is what is known as the fogging effect. This causes the deposition of thin but highly refractive films on the inside of car windows due to the heat-related migration of volatile substances from the materials used.

According to Peter Vanacker, Head of the Polyurethanes Business Unit and member of the Executive Committee at Bayer MaterialScience, "The new technology represents a quantum leap in the development of state-of-the-art production processes with even greater efficiency. It allows innovative energy management and sets new standards for efficient and resource-saving production processes. This enables us to offer our customers top-quality products with lower VOC contents and further consolidate our leading role in the world market for polyurethanes with optimized cost structures."


Bayer May Further Delay Chinese Polycarbonate Project
 Shortage of components and labor in busy Shanghai add to the woes

Bayer MaterialScience may further postpone its proposed polycarbonate expansion in China due to continued problems in market conditions. That comment was made by Ian Paterson, member of the plastics producer's Executive Committee at a press conference in New York City on June 27.

The first stage of the new production plant near Shanghai came on line a year ago, adding 100,000 metric tons of capacity. The initial plan was to add another 100,000 metric tons by the end of this year. The project was first pushed back because of a shortage of components in China due to booming construction. "We may delay startup longer," announced Paterson at the press conference. He said that PC demand is growing at about a 10 percent rate per year globally, but there are fears that the China market could become flooded.

There are also concerns that use of polycarbonate in compact discs could slow because of music downloading from the Internet. Another cloud hanging over the PC market has been surging prices for feedstocks. This comes despite some easing of hydrocarbon pricing. Crude oil futures have been trading about $7 below a year ago. "There has been a decoupling of oil and derivatives because there isn't enough capacity for the derivatives," Paterson said.

Petrochemical producers in Asia are particularly dependent on naphtha, a light distillate that has been trading at record levels recently in Asia ? yet another reason to slow expansion in China.

Paterson said that Bayer is aggressively attacking other costs to maintain profitability, and is also having some success passing on price increases. On June 14, Bayer hiked PC prices 14¢/lb. Flame-retarded PC was selling for around $2/lb before the price hike.

Another consideration for Bayer is the potential market impact of SABIC's acquisition of GE Plastics, which is expected to be completed later this year. GE Plastics is also a major producer of polycarbonate.

August 27, 2007 Bayer

Bayer MaterialScience is to transfer EXATEC shares to GE Plastics

Bayer MaterialScience is to transfer its shares in EXATEC to GE Plastics. This transaction will be completed subject to the approval of the relevant antitrust authorities. No statement will be made concerning the financial aspects.

With this decision, Bayer MaterialScience has opted to carry out its own independent development of
polycarbonate automotive glazing, a market that is set to enjoy future growth. EXATEC was founded in 1998 as a 50:50 joint venture between Bayer and GE with the aim of developing technologies to produce automotive glazing systems from polycarbonate. The collaboration was instrumental in introducing polycarbonate to the market of automotive glazing. With immediate effect, Bayer MaterialScience will provide all customers with ongoing development of technologies for polycarbonate glazing and the tailor-made plastic Makrolon®.

Dr. G
ünter Hilken, head of the Polycarbonates Business Unit at Bayer MaterialScience, said: "In the next few years, Bayer MaterialScience anticipates fast growth in the potential applications for polycarbonate, particularly in the market for large panorama roofs. Several manufacturers are already confident of the advantages of our high-tech Makrolon®, for example Mercedes®, who are using it in the roof module of the GL-Class, and smart®, who are deploying it in the panorama roof of the new fortwo®." Hilken added that, in the medium and long term, the freedom of design offered by the material, its weight saving and the opportunities it provides for integration mean it can also be used for rear windows, and open up further areas of application within the automotive industry.

automotive glazing 窓ガラス代替分野

EXATEC is a glazing system technology developer. EXATEC licenses its technology to tier 1 polycarbonate glazing system suppliers. Technology available from both of EXATEC's parents, Bayer MaterialScience and GE Plastics, as well as its own developments put EXATEC in the leading position for polycarbonate glazing systems. EXATEC's comprehensive glazing systems - EXATEC® 900.

EXATEC's R&D covers the entire value chain and every technical and manufacturing aspect from the specific resins of Lexan and Makrolon, selected because of their unique suitability for glazing, design, injection molding technology (1K, 2K, IMD etc), UV and abrasion resistance, development of testing and validation methods. QA systems, 2D and 3D printing technologies suitable for PC glazing systems as well as innovative bonding methods form the basis of the EXATEC know-how and can be demonstrated at the Development Center in Wixom.

The technology solutions, in particular EXATEC
® 900 and EXATEC® 900vt address a growing demand in the automotive industry for innovative glazing, e.g. panoramic roof systems or new solutions for backlites and liftgates.

エグザテック社のEXATEC(R) 900コーティング・システムには、自動車向けグレージング技術に最適な液状コーティング剤を採用している。この先進の液状コーティング剤を使用することにより、プラズマコーティングされた最終保護層(PECVD)への接着性が向上し、競合する素材よりも高い加工性を実現し、生産性の向上とコスト低減を提供する。

OEMメーカーが要求している10年間の耐候性と耐摩耗性を満たすコーティングを特徴としている。EXATEC 900コーティング・システムにおける溶剤を使用しない水ベースの下塗りは、成形の応力の影響を受けにくいため、微少なひびや層間剥離が起こる可能性を最小限に抑えることができる。また、プラズマ・コーティングは、ガラスと同様の表面エネルギーを発生させるため、自動車製造業界で最終的に車体にガラスを取り付けるときに使用する標準的な接着剤との最適な相溶性をも可能としている。

August, 2007 GE

Exatec Confirms GE Plastics' Acquisition of Bayer MaterialScience's Share of Exatec Joint Venture

Exatec, LLC announces that GE Plastics has agreed to acquire Bayer MaterialScience's share of the Exatec joint venture, which provides advanced glazing systems to the automotive industry.

Under the terms of the deal, which is subject to regulatory approval, GE Plastics will acquire Bayer's 50-percent share of the joint venture, thereby increasing its equity interest in Exatec to 100 percent. Transaction details were not disclosed.

"GE and Bayer were the first to enable the use of polycarbonate glazing technology in vehicles. Exatec has advanced the development of glazing with its patented coating system through aggressive testing against rigorous performance criteria.  With the demand for lightweight, environmentally responsible vehicles projected to grow globally over the next few years, the time is right to restructure the joint venture and take it to the next level of commercial development," said John Madej, President and CEO, Exatec, LLC. 
Exatec was founded in 1998 as a joint venture between Bayer MaterialScience of Leverkusen, Germany, and GE Plastics, part of General Electric Company, Pittsfield, Mass., USA. Exatec is a global company with a technical development center in Wixom, near Detroit, MI and a European subsidiary based in Bergisch Gladbach near Cologne, Germany. The company has successfully developed new technologies and met numerous milestones related to regulation and testing over the past eight years.  The company plans to fully commercialize and industrialize its technologies for a broad range of automotive OEMs and tiers.  

Madej added, "This is a great transition for Exatec. We started out with the support and development expertise of the two premier polycarbonate manufacturers, and now we are excited to move forward with the industrialization of our business as a wholly-owned entity. This is the right move at the right time and is a win-win for our current and future customers and our supplier partners." 
Exatec's automotive glazing system covers all processes and manufacturing steps, including molding with added functionality, 3D printing, decoration technologies, and plasma-enhanced chemical vapor deposition (PECVD) hardcoats.

The wholly owned Exatec will continue to serve its customers across the globe in developing advanced glazing technology applications.

Bayer MaterialScience will proactively develop and expand its automotive glazing business independent of the JV.

About Exatec, LLC.
Exatec ( was founded in 1998 as 50:50 Joint Venture of Bayer MaterialScience and GE Plastics with the mandate to develop polycarbonate glazing systems for the automotive market. Headquartered at its state-of-the-art Technology Development Center in Wixom, Michigan, Exatec has developed patented polycarbonate coating systems, which ensure market leading weatherability and glass like abrasion performance. Exatec operates an engineering design and development office in Bergisch Gladbach, outside Cologne, Germany, to support the European automotive market. Exatec's most recent glazing system, Exatec® 900, was launched in 2004 and is currently being evaluated on vehicles by OEM's across


August 28, 2007 Bayer

Expansion of the global compounding network:
New logistics center for Makrolon
® and polycarbonate blends in Krefeld-Uerdingen
Higher product quality and supply flexibility

Bayer MaterialScience AG - producer of the world's no.1 polycarbonate Makrolon®- is investing comprehensively in expansion of the global compounding network to offer customers a better service with optimized logistics processes. The Krefeld-Uerdingen site is a focus for investment, where a new logistics center is being constructed for storing, mixing and packing Makrolon® and the polycarbonate blends Bayblend® and Makroblend®. "The new silo installation for direct filling is a technological milestone. It enables particularly gentle mixing, dust removal and packing of granules, coupled with extremely high material throughput, which benefits both product quality and supply flexibility," explained Dr. Christoph Schwemler, head of the Makrolon® compounding section in Krefeld-Uerdingen. The initial expansion phase is scheduled to kick off at the end of 2008. The silo has an annual capacity of 130,000 metric tons, which can be extended to 180,000 metric tons. Investment in Krefeld-Uerdingen amounts to around EUR 20 million.

The new logistics facilities are being built in the immediate vicinity of the Makrolon
® compounding plant. Each production line is assigned to a filling unit, with granules being transported to blending silos using processes that minimize dust buildup in the granules. Mobile filling stations are used for packing 25 kg bags and bulk containers. "We can therefore respond quickly and flexibly to orders and supply our customers reliably even in peak periods," says Schwemler. The filling procedure is particularly gentle on the product as it works through the use of gravity.

Bayer MaterialScience will also build
a compounding facility in southern China for Makrolon® and its blends and this will begin production in the first half of 2008. In addition, construction of a compounding center is planned at the new site in New Delhi (India) for the end of 2008. A color competence center will be linked up to both plants, as is the case with the existing compounding facilities in Krefeld-Uerdingen, Filago (Italy), Newark (Ohio, U.S.), Shanghai (China) and Map Ta Phut (Thailand).

September 5, 2007 Bayer

New production facility opened in Laufenburg
Carbon nanotube capacity expanded
 Investment boosts widespread industrial use of Baytubes(R) / Further capacity increases planned in the medium term

Bayer MaterialScience AG is opening a second production facility for BaytubesR, its carbon nanotubes, at H.C. Starck GmbH in the town of Laufenburg on the German-Swiss border. The new facility has an annual capacity of 30 metric tons. Together with the pilot production plant for Baytubes already located at the site, this now gives Bayer MaterialScience a total annual capacity of 60 metric tons in Laufenburg. Dr. Tony Van Osselaer, the member of the Board of Management of Bayer MaterialScience responsible for Production & Technology, told customers from all over the world who attended the opening ceremony: This makes us one of the worlds leading manufacturers of carbon nanotubes and underlines our excellent credentials as a research-oriented company. Carbon nanotubespotential for innovation will ensure their long-term market success.

H.C. Starck is a former subsidiary company sold to Advent International and Carlyle Group to fund the Schering acquisition last year

Estimates put the market potential for carbon nanotubes (CNT) in the coming years at several thousand metric tons per year. The main disadvantages of CNT production processes to date have been the high costs of synthesis and the relatively large quantities of unwanted impurities in the product. These two problems have prevented the widespread industrial use of carbon nanotubes. Thanks to a special new synthesis process, Bayer MaterialScience is one of the few manufacturers able to offer commercially relevant quantities of CNT with consistent material purities well above the 95 percent mark. The investment in Laufenburg represents an important step towards gaining access to large, lucrative industrial CNT applications and securing long-term market share,said Martin Schmid, head of global BaytubesR operations at Bayer MaterialScience.

The Laufenburg location has a number of advantages for Baytubes production. Firstly, as a world leader in the production of refractory metals, engineering ceramics and electronic chemicals, H.C. Starck has the necessary technical and logistics setup - for example, in terms of production facilities, energy and gas supplies and waste gas purification. Secondly, Bayer MaterialScience benefits from H.C. Starck
s many years of expertise in processing technology and systems design for high-temperature gas phase processes. In H.C. Starck - a specialist in customized particle design - Bayer MaterialScience has the ideal partner for the successful manufacture and further development of Baytubes. Our success in up-scaling this sophisticated production process offers impressive proof of this,said Dr. Heinz Heumuller, Managing Director of H.C. Starck.

The new, highly automated closed-loop facility is used for production and for development work to optimize processes and procedures.
Our aim is to use the knowledge obtained for the next up-scaling of the production process,explained Dr. Ralph Weber, Production Manager for Carbon Nanotubes, who shares responsibility for the operation and further development of the facility in Laufenburg with Dr. Theo Konig from H.C. Starck. In the medium term, Bayer MaterialScience is planning to build a large-scale Baytubes production facility in Germany with an annual capacity of 3,000 metric tons.

CNT have unusual properties. Depending on their molecular structure, they can either conduct electricity better than copper or act like a semiconductor. Their thermal conductivity rivals that of diamond, the best naturally occurring conductor of heat, and their high modulus of elasticity and tensile strength gives them five times the mechanical strength of steel.

Bayer MaterialScience helps numerous companies develop applications for Baytubes. The aim is to build up a broad CNT application spectrum. For example, Baytubes have tried-and-tested antistatic properties in machine components made from polyether etherketone (PEEK). The manufacture of antistatic packaging films for computer chips and plastic containers for the protected transport of integrated circuits also provides great potential. In automotive engineering, BaytubesR could be added to plastics used for bodywork components. These components - for example fenders made from a polyphenylene oxide/polyamide blend - would then not have to be given a conductive primer, thus resulting in significant cost savings. A number of sports goods manufacturers already use Baytubes to improve the strength and stiffness of plastics. Applications in this field include surfboards, baseball bats, and sticks for cross-country skiing and Nordic walking.

About H.C. Starck:
The international H.C. Starck Group has over 3,400 employees at 13 sites worldwide. In 2006, the Group generated sales of EUR 985 million.
H.C. Starck produces a globally unique range of powders from the refractory metals tungsten, molybdenum, tantalum, niobium and rhenium and their compounds (borides, carbides, nitrides, oxides, silicides and sulphides). Other products include ceramic powders, sintered metal powders, thermal spray powders, non-ferrous metals such as nickel and cobalt and their salts, plus boron and boron compounds. Besides metallic powders, the company also produces semi-finished and finished products made from molybdenum, tungsten, tantalum, niobium, titanium, zircon and nickel and their alloys. In addition, H.C. Starck makes specially formulated electrically conductive polymers and silica sols for the electronics industry. In the field of engineering ceramics, H.C. Starck boasts a wide range of ceramic precursors. The subsidiary H.C. Starck Ceramics GmbH & Co. KG manufactures customized machine and engine components and foundry products made from silicium carbide, silicium nitride, aluminum titanate, and zirconium and aluminum oxide. The H.C. Starck portfolio also includes powders and components for use in high-temperature solid oxide fuel cells (SOFCs).

Jakarta Post September 07, 2007

Bayer makes Indonesia Asia-Pacific production base

PT Bayer Indonesia, a manufacturer of pharmaceuticals and over-the-counter (OTC) products, will make Indonesia its production base for consumer-care products in Asia-Pacific following the expansion of the company's recently acquired plant.

Bayer Indonesia president director Hans-Josef Schill said Thursday that the expansion of the plant would allow the company to raise its production capacity to 2,000 tons of over-the-counter drugs per year from 700 tons previously.

With the expansion of its plant in Cimanggis, West Java, which the company acquired from the Indonesian unit of Swiss major pharmaceutical company Roche, Bayer will be able to meet the demand not only from the domestic market, but also from the Asia and Pacific region.

"The expansion will allow the company to gradually increase its production capacity to up to 2,000 tons by 2012 for the domestic and regional markets," Schill told reporters following the inauguration of the expanded plant.

He said that the expansion, which took about 17 months to complete, had cost the company about 18 million euros (US$24.58 million), of which about 8 million euros were spent on high-technology facilities and state-of-the-art machinery.

"The Cimanggis plant produces leading consumer brands, including Redoxon and Berocca, for the local market and some countries in the region, including Malaysia, Korea, Taiwan, China, Hong Kong and Australia. Part of the production will also exported to France," Schill said.

Head of Consumer Care David Marwoto Budi said that the company was confident the expansion would allow Bayer Indonesia to raise exports 7.5-fold in 2010, from between Rp 20 billion and Rp 25 billion recorded in 2005.

"Local demand for Bayer's OTC products is good. We sell 90 percent of production domestically. This makes Indonesia the third largest market for Bayer's OTC products in Asia Pacific, after Australia and China," David said.

Schill said that Indonesia was the 15th largest OTC market worldwide, notching up double-digit growth rates every year.

David predicted that the OTC market would grow by nine percent this year, with Bayer's total sales of OTC products expected to grow by between 12 and 15 percent.

Bayer Indonesia operates five factories (including the Cimanggis plant), producing both pharmaceutical and chemical products, and employs about 1,200 workers.

September 12, 2007 Bayer

Bayer MaterialScience examines feasibility of 400,000-ton MDI plant in Europe
  Total worldwide capacity would increase to 1,850,000 tons a year / Commissioning could take place in 2012

Bayer MaterialScience is considering building a world-scale production facility for
methylene diphenyl diisocyanate (MDI) in Europe. The plant would have an annual capacity of 400,000 tons and could be commissioned in 2012. A feasibility study would focus particularly on factors such as costs and infrastructure for a number of possible locations. A decision on the construction of the facility is due to be made next year. If the project were realized, the total worldwide MDI capacity of Bayer MaterialScience would increase to 1,850,000 tons a year. The new production plant at the integrated Shanghai site, with an annual capacity of 350,000 tons, is included in this amount. This plant is scheduled to be taken into operation next year. With a new world-scale plant for MDI in Europe we would like to expand our leading position in the polyurethane industry, explained Patrick Thomas, Chairman of the Board of Management of Bayer MaterialScience.

2006/12/20 Bayer、MDI 能力 約110万トンに +上海35+今回40=185万トン

This strategy is intended to create the basis for meeting the rising demand for MDI in eastern and western Europe and in the Middle East in the medium to long term. The new plant would be an important addition to our worldwide production network, further improving the supply to our customers,said Peter Vanacker, head of the Polyurethanes Business Unit and member of the Executive Committee of Bayer MaterialScience. The demand for MDI in Europe is currently estimated to be growing at about six percent a year. Just last year, the company increased its production capacities at Krefeld-Uerdingen and Tarragona to 200,000 and 150,000 tons a year, respectively. Further debottlenecking measures in existing production facilities in Europe are scheduled to be implemented before the new world-scale plant is completed.

It is intended that the new world-scale facility should incorporate, for the first time, a new, highly energy-efficient technology for the final stage in the reaction, that of phosgenation. Thanks to this process innovation the energy consumption of the plant can be decreased considerably by reducing the solvent cycles. Consequently, the emissions per unit of manufacturing will also be significantly reduced. Furthermore, the specific investment costs are expected to be clearly lower than for a conventional plant of the same size.

The new facility is intended to form part of a complete, newly designed MDI train that will also include production plants for the precursors nitrobenzene, aniline and diphenylmethane diamine (MDA). The train would be the largest and most modern integrated MDI production facility in Europe.

MDI is an important chemical building block in the production of polyurethane foams and elastomers. Rigid insulating foams are used, for example, in the production of refrigerators and freezers, as thermal insulation in the construction industry and in district heating pipelines. MDI elastomers are used in the footwear, automotive, and electrical industries.

September 26, 2007 Bayer

Bayer MaterialScience to build a world-scale plant for polymer polyols in Antwerp

  Total investment of around EUR 40 million /
  Commissioning scheduled for late 2008 /
  Efficient production process delivers optimized products

Bayer MaterialScience is planning to build a world-scale plant for the manufacture of polymer-filled polyether polyols (PMPO ポリマーポリオール) at the Antwerp site in Belgium. The plant, representing a total investment of EUR 40 million, will have an annual capacity of 60,000 tons and is scheduled for commissioning in late 2008. Bayer MaterialScience already manufactures polyether polyols, one of the starting materials for polymer polyols, at the Antwerp site. The decision to build the new plant in Antwerp enables leverage of available synergies and will further increase the efficiency of PMPO production.

The planned facility will utilize a new process developed by Bayer MaterialScience in close cooperation with Bayer Technology Services GmbH. This innovative and patented PMPO technology delivers products that are considerably superior to those manufactured using conventional processes and has already been successfully tested on a multi-ton scale.

The end products yielded by the new process contain very low levels of volatile organic compounds (VOCs) that were impossible to achieve with the technologies used to date. In addition to improved product properties, Bayer MaterialScience expects a reduction of 25 percent in plant construction costs and in the energy consumption of the completed facility once operational.

According to Peter Vanacker, Head of the Polyurethanes Business Unit and a member of the Bayer MaterialScience Executive Committee: "The new technology represents a significant advance in the development of state-of-the-art production processes with even greater efficiency. It allows innovative energy management and sets new standards for efficient and resource-saving production processes. This enables us to offer our customers top-quality products with lower VOC contents and further consolidate our leading role in the world market for polyurethanes with optimized cost structures."

PMPOs are utilized throughout the world, primarily
for the production of flexible polyurethane foam, which is used in large quantities in upholstered furniture, mattresses and car seats.

2007/10/11 CNN

Bayer sites searched by German Cartel Office in competition probe

The German Federal Cartel Office said it searched Bayer AG offices at two sites of the drugmaker's Bayer Vital unit on suspicion the company tried to illegally influence pharmacies' pricing of over-the-counter drugs.

The sites were at the drugmaker's headquarters in Leverkusen and in the city of Cologne, the Cartel Office said in a statement.

German magazine Stern yesterday reported that Bayer had offered sales discounts of up to 3 pct to pharmacies, provided they limit special offers on Aspirin and other prescription-free drugs to within 20 pct, and to no longer than four weeks. Stern cited from an e-mail by a Bayer executive to sales representatives.

The antitrust regulator today said it was contacted by Bayer after publication of the article and given assurance of the company's cooperation.

Among documents that investigators are trying to obtain are the e-mail mentioned in the article and sales contracts with pharmacies, a Cartel Office spokeswoman said.

Bayer yesterday said it did not have any price agreements with pharmacies apart from non-binding arrangements.

Bayer is under suspicion of having granted discounts to pharmacies in exchange for promises not to take 'big and long-term price cuts' on over-the-counter medication, the Cartel Office said. Such practices are illegal under German and European competition laws, it added.

A European Commission spokesman, meanwhile, said that 'to the best of' his knowledge, the commission is not involved in the probe.


Bayer Suffers From Price Fixing Headache

German antitrust authorities have searched pharmaceutical company Bayer's offices in connection with allegations it fixed prices with over 11,000 German pharmacies.

Officials from the German Federal Cartel Office searched sites belonging to
Bayer Vital, the chemical group's medicine distribution division, in the western German cities of Leverkusen and Cologne, the office said.

The raid was the result of "suspicion that Bayer had influenced the retail price of its products in pharmacies in an uncompetitive manner," the office said in a statement, adding the goal of the raids was to "secure relevant documents."

A Bayer spokesman said the company has fully cooperated with the investigation.

"We provided full cooperation to office staff who came to clear up" allegations the group had already rejected, the spokesman told the AFP news agency on Wednesday, Oct. 11. "We obviously have recommended prices that are not binding, but in no case do we have price agreements that violate the law."

Discounts for high prices
Bayer wanted to position itself as a premium drug maker, the e-mail reportedly said
According to a report in the magazine Stern, Bayer was suspected of providing rebates of up to 3 percent to 11,000 German pharmacists who maintained elevated prices for aspirin and other products.

European and German laws prohibit such practices, which can be punished with fines of up to 2.9 billion euros ($4.1 billion), Silke Kaul, a spokeswoman for the antitrust agency, told the Associated Press.

The weekly Stern newsmagazine quoted an e-mail from a Bayer-Vital manager dated Dec.30, 2006 that allegedly reminded a salesman that rebates would be approved "only if the rules of the game are respected."

The "rules" are reported to have been sales on medicine that lasted longer than four weeks or discounted certain Bayer products by more than 20 percent off the recommended retail price.

Cartel history
Germany lifted uniform pricing for non-prescription medicines in 2004, and Bayer has been the target of price-fixing probes in the past.

In the pharmaceutical sector, the German group was found guilty in 2005 by Portuguese authorities of fixing prices on medication supplied to 22 hospitals.

Nov 2, 2007 Reuters

Bayer may announce plastics restructuring - analysts

Germany's Bayer may unveil an overhaul to improve profitability at its plastics business when the German drugs and chemicals group reports its quarterly results next week, analysts said.

"We expect Bayer to announce a restructuring programme for Bayer MaterialScience," Andreas Theisen, an analyst at WestLB, said in a research note.

Bayer vies with Saudi Basic Industries Corp (SABIC), which bought GE Plastics for $11.6 billion, for the world's top spot in plastics via its material science unit.

Unlike SABIC and local rival BASF, which produces oil and gas to offset margin pressures at certain parts of their businesses, Bayer's polycarbonate business is expected to suffer from prolonged high oil prices.

Tero Weckroth, an analyst at Dresdner Kleinwort, also expected a possible restructuring at the unit that had 2006 sales of about 10 billion euros, accounting for about a third of group sales and underlying core profit.

Bayer declined to comment.

Underlying core margins at the materials unit had fallen to 15.6 percent in the second quarter from 17.7 percent a year ago as important feedstocks such as phenol to produce synthetic fibres climbed to record highs.

At the same time, Bayer products faced tough competition.

Bayer MaterialScience said last month it will raise the sales prices for its polycarbonates worldwide due to "constantly high costs for raw materials and energy". Bayer is set to announce its quarterly performance on Tuesday at its headquarters in Leverkusen.

Overall, Bayer's third-quarter operating profit before special items is expected to rise 18 percent to 911 million euros ($1.3 billion), driven by strong sales of its cancer and contraceptive drugs and farming products like weed killers.

Dresdner's Weckroth expected the healthcare unit to post strong margins, while the CropScience unit that sells herbicides and fungicides would return to growth after a few weak quarters.

"Messy but positive," he said of the likely Bayer results.

The company that invented Aspirin had said last month that it will take a 152 million-euro impairment charge in the third quarter after its higher dose multiple-sclerosis drug Betaseron failed to show it could work better than the standard dose Betaferon and rival Teva's Copaxone.

"Despite these headwinds, we advise buying into the share," said Weckroth, who had a price target of 67 euros for Bayer.

Bayer shares were up 0.9 percent at 56.27 euros at 1427 GMT, compared with a 0.7 percent fall in the German DAX index (.GDAXI: Quote, Profile, Research).

Bayer shares have risen almost 40 percent this year partly because of its strong drug pipeline and also on recovery in its agrochemicals business. It is the fifth-best performing stock in the blue-chip index so far this year.

2007/11/19 Bayer

Bayer launches Group-wide climate program
 Integrated measures for increasing climate protection and dealing with climate change 

Bayer has launched an integrated, Group-wide "Bayer Climate Program", with which it wants to further reduce CO2 emissions from its production facilities and develop new solutions for increasing climate protection and dealing with climate change. It encompasses different measures that have been initiated by the Group Management Board and should cover a period of several years. In the new climate protection program, which is based on the newly formulated "Bayer Policy on Climate Change", Bayer will bundle its specific expertise as an inventor company. It has, in fact, already begun working on the first lighthouse projects: a global concept for zero-emission buildings for offices and other industrial buildings known as the EcoCommercial Building, the development of stress-tolerant plants and systems to encourage the effective use of crops for biofuels, and the "Bayer Climate Check" for optimizing production processes. Bayer will invest EUR 1 billion in climate-related research and development and other projects in the next three years.

"We are well aware that we are an emitter of greenhouse gases," said Chairman of the Board of Management of Bayer AG, Werner Wenning, during the presentation of the new climate program at an international press conference in front of more than 100 journalists in Leverkusen. "That was why in the past we focused our attention on lowering CO2 emissions". Between 1990 and 2006 the company considerably reduced its absolute global greenhouse gas emissions ? by 36 percent in fact. In addition, specific emissions per product unit had also been lowered as a result of consistent improvements in energy efficiency.

Wenning added: "We want to continue growing, not least because we manufacture innovative products for efficient climate protection and for dealing with climate change.
Bayer products, he said, were making a direct contribution in many different ways to saving energy and conserving resources in our everyday life. For example, polyurethane insulating materials in buildings and refrigerators help save an enormous amount of energy.

For these achievements, independent institutions like the Carbon Disclosure Project have on several occasions awarded Bayer the distinction "Best in Class". Only recently, the company was included for the third time in a row in the Climate Disclosure Leadership Index ? the world's first climate protection index. It is the only European company in the chemical industry to receive this honor.

Bayer supports the development of effective policies for climate protection at global level, and has been very much involved in initiatives such as 3C: Combat Climate Change. For this reason, Wenning appealed to politicians to include major greenhouse gas emitters like the United States, China and India in a new international climate agreement. "We need a turnaround with CO
2 emissions. The global problem can only be addressed through joint action worldwide, at least by all the major parties responsible for emissions," said Wenning. ?Europe and particularly Germany cannot stop the climate change by adopting an isolated pioneering role. In addition, this could seriously endanger industry's competitiveness

"We at Bayer take climate change very seriously and regard it as an ecological and economic challenge," continued Wenning. In its Mission Statement, "Bayer: Science For A Better Life", the company acknowledges and accepts its role as a socially and ethically responsible corporate citizen. "We are not resting on our laurels with the successes we have achieved so far. We want to set new standards".

For the period between 2005 and 2020, Bayer has set new and ambitious emission targets, particularly in view of the achievements it has already made in cutting greenhouse gas emissions.

The Bayer MaterialScience subgroup wants to reduce its specific greenhouse gas emissions per ton of sales product by 25 percent globally. Bayer CropScience is targeting a reduction of 15 percent in its absolute global emissions, and Bayer HealthCare of 5 percent. "These targets are demanding because we want to bring climate protection and economic growth into harmony through greater energy efficiency," explained Wenning.

"The Bayer Climate Program thus fully exploits the potential we have identified for protecting the climate, and implements a variety of individual measures in an integrated Group-wide approach," said Dr. Wolfgang Plischke, the Member of the Bayer Board of Management responsible for Innovation, Technology and Environment. "We will work consistently on implementing this program over the next few years."

Making production processes more climate-friendly
Bayer has also developed a new control instrument for increasing energy efficiency and reducing CO
2 emissions from its production plants called the Bayer Climate Check. The innovative aspect of it is that it also includes the upstream stages of production in the assessment, namely raw materials, energy and logistics. The Bayer Climate Check thus provides decision-makers for the first time with a further ecological criterion for designing production processes in addition to the conventional profitability calculation.

The Bayer Group will use the Climate Check around the world to examine the "climate footprint" of its production processes, in other words, the effect on the climate of its production plants. In the first step, 100 production facilities throughout the world will be scrutinized, covering some 85 percent of greenhouse gas emissions. After this, action will be taken to introduce the improvements identified in the check in order to reduce greenhouse gases and enhance energy efficiency.

Furthermore, Bayer will use the Climate Check to extend its present ecological assessment of major new investment projects by also considering the climate protection angle.

The Bayer Climate Check will be certified at the beginning of 2008 by the technical inspection agency T
ÜV. So that other companies can also benefit from this innovative tool for reducing CO2 emissions, Bayer will also offer it on the open market.

The EcoCommercial Building: A global concept for zero-emission buildings
Energy consumption in buildings is responsible for nearly 20 percent of global greenhouse gas emissions. Bayer has launched an initiative devoted to what has until now been a rather neglected segment, namely commercial buildings. Working together with a number of partners, the company has developed the "EcoCommercial Building", a globally adaptable concept for zero-emission buildings. Based on insulation with high-quality Bayer products and the building's own resources for generating renewable energy, the EcoCommercial Building can meet its entire energy needs itself.

Bayer will launch the project with a building of its own. In spring 2008, it will begin the construction of a new company office building near New Delhi, India, thereby realizing the EcoCommercial Building concept for the first time. Through the integration of other aspects such as the glazing of the facades and special ventilation systems, the building will be adapted to the climatic conditions of the subtropics with their extreme heat and humidity. The result is that this zero-emission building will consume 70 percent less electricity than the average building in India.

The concept of the EcoCommercial Building can be adapted to the Earth's various climate zones. Whether it is a matter of keeping heat out, as in India, or keeping heat in, as in the northern hemisphere, the polyurethane insulating materials display an exceedingly positive energy balance. In fact, they save more than 70 times as much energy as is needed for their production.

Secure harvests, and crops as energy suppliers
Climate change is also a multiple challenge for agriculture. The global population continues to grow and, with it, the need to feed the world's people and animals. As things stand at the moment, the area under cultivation cannot be increased. In fact, the amount of agricultural land is declining due to erosion and desertification. In addition, heat, drought or salty soil can reduce the attainable optimal yield of crops by up to 80 percent.

The consequences of climate change threaten to further exacerbate these cultivation conditions. This means that, under more difficult conditions, agricultural productivity must be raised. In short, the yield per hectare under cultivation must be improved significantly.

In addition, the shortage of fossil fuels and the damage they cause to the world climate are leading to plants becoming more important as renewable energy raw materials for biofuels. As a result, there is also growing competition for acreages between energy crops and food crops.

Against this background, safeguarding harvests and raising yields is of major importance. This is where Bayer comes in. The company wants to make use of the possibilities offered
by biotechnology to make plants more resistant to climatic conditions such as drought and heat. The intention is to enhance their so-called "stress tolerance". Initial field trials with canola have already shown a significant increase in yields. Furthermore, Bayer can also offer solutions in conventional crop protection for making plants more resistant to stress and thereby safeguarding harvests.

One possibility for eliminating the competition for land under cultivation is provided by the
jatropha plant. It can be cultivated in dry regions that are not suitable for growing food crops. In addition, it is unsuitable for producing food anyway. The jatropha seed consists of 30 percent oil, which can be used for the production of biodiesel. Bayer intends to pursue this approach in a research project with cooperation partners.

The company is already making an important contribution to providing crops as raw materials for biofuels with its seeds for high-yield canola. InVigor
®, a high-yield canola variety developed by Bayer researchers and grown in Canada, makes it possible, by improving harvests, to achieve a 20 percent higher yield of biodiesel than with comparable seeds. The company is also currently examining options with bioethanol.

New policy for vehicle fleets and reduction in business air travel
Bayer will also involve its employees around the world in its integrated program. Initially in Germany and then gradually in other countries, incentive systems will be introduced for using low-emission vehicles and gas-fueled company cars. From 2007 to 2012, the Group wants to cut the emissions caused by company vehicles by 20 percent. In addition, the greater use of new telecommunications technologies is aimed at reducing business air travel.

Encouragement for outstanding climate scientists and dedicated school students
In addition, Bayer intends to introduce two initiatives to encourage scientific innovations in the field of climate protection and to motivate young people to become interested in this subject. Firstly, the recently established Bayer Science and Education Foundation will bestow, every two years, the Bayer Climate Award with a prize of EUR 50,000 on representatives of the natural sciences and technical disciplines who develop groundbreaking solutions for climate protection. The award will be granted for the first time in 2008. The candidates will be nominated by a renowned group of experts.

The Foundation will also enable dedicated school students, in a scholarship program established under the title "Bayer Climate Fellows", to attend seminars abroad on the subject of climate protection by offering financial support of up to EUR 5,000.

More information is available at


2007/11/30 AFX News

Bayer has financial means for 'larger' acquisition - CEO

Bayer AG, which bought rival drug maker Schering last year, has the financial means to pursue a 'larger' acquisition after cutting debt by 4.8 bln eur this year, chief executive Werner Wenning told Handelsblatt.

Bayer's current focus, however, is on integrating Schering, Wenning said in an interview with the newspaper.

Any potential takeover would be in the health-care industry and would not necessarily be a 'big bang', he said.

Further consolidation among major pharmaceutical companies cannot be ruled out as companies look for new areas of growth, and mergers are seen as a way to realise cost-cutting potential, Wenning added.

The company's drugs division will post internal growth at the same rate as the industry through 2009, but it should grow faster than the market thereafter on demand for anti-thrombosis pill Xarelto and cancer drug Nexavar, he said.

The development of Xarelto is costing Bayer 'considerably more' than 1 bln eur because the pill will be tested on 50,000 patients in total, he told Handelsblatt.

August 21, 2008 Bayer

Further expansion of activities in China: Bayer MaterialScience starts construction of a world-scale TDI plant in Shanghai

 Annual capacity of 250,000 metric tons approved /
 Capacity can be increased to 300,000 metric tons per year /
 Start-up planned for 2010

During the course of this year Bayer MaterialScience plans to start construction of a state-of-the-art world-scale facility for the polyurethane raw material toluene diisocyanate (TDI) at the integrated production site in Shanghai. The relevant Chinese authorities granted permission for the new plant, which is scheduled to be commissioned in 2010, to have an initial capacity of 250,000 metric tons per year. The companys global TDI capacity will thus increase to over 700,000 metric tons a year. There are plans to expand the production capacity of the new plant to 300,000 metric tons per year at a later date.

With construction work for this local TDI production plant beginning now, we are once again underlining our commitment to what is the biggest growth market in the world, said Patrick Thomas, Chairman of the Board of Management of Bayer MaterialScience. A four-percent annual increase in global TDI consumption is expected in the medium term. Forecasts for China as the major growth driver in the Asia/Pacific region are twice that, at around eight percent per year. TDI is deployed throughout the world to produce flexible polyurethane foam, which is used in large quantities in upholstered furniture, mattresses and car seats.

The innovative gas phase phosgenation technology developed by Bayer MaterialScience is being used on a world scale for the first time in the TDI plant. It reduces solvent consumption by around 80 percent in a production facility of this size, thereby cutting energy consumption by up to 60 percent. Thus the process technology enables a significant reduction in operating costs and also makes a key contribution to climate protection. Compared with conventional production facilities of similar size, carbon dioxide emissions can be cut by around 60,000 metric tons a year. The new process technology also cuts investment costs for this type of large-scale facility by some 20 percent.
This enables us to further consolidate our leading position on the world market for polyurethanes with optimized cost structures,explained Peter Vanacker, head of the Polyurethane Business Unit and a member of the Bayer MaterialScience Executive Committee.

The TDI project is part of a wide-ranging investment program at Bayer
s integrated site in Shanghai. The total investment planned for this site up until 2012 amounts to EUR 2.1 billion, EUR 0.7 billion of which are scheduled for the period from 2009 until 2012. This will cover the expansion of the originally planned production capacities, including the necessary precursors, as well as any increased construction costs ? due to the price of steel, for example.

The integrated site in Shanghai is currently being expanded by Bayer into the group
s largest and most technically advanced production site in the Asia/Pacific region. The backward-integrated world-scale plant for diphenylmethane diisocyanate (MDI) is due to go into operation this year, with a capacity of 350,000 metric tons per year. This production facility will be the largest of its kind in the world. In 2006, Bayer MaterialScience inaugurated a splitter in Shanghai that separates raw MDI into monomeric and polymeric MDI and has a capacity of 80,000 metric tons a year. Polymeric MDI is used in large volumes to produce rigid polyurethane foam, which offers the best thermal insulation of all materials currently available on the market and is used as an insulation material in house building and the refrigeration chain. The monomeric product is utilized as a starting material for polyurethane elastomer production.

About Bayer MaterialScience:
With 2007 sales of EUR 10.4 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. At the end of 2007, Bayer MaterialScience had 30 production sites and employed approximately 15,400 people around the globe. Bayer MaterialScience is a Bayer Group company.

2008/9/9 Reuters

Bayer shares gain on talk of Pfizer interest

Shares in German drugs and chemicals group Bayer rose nearly 4 percent on Tuesday on market talk of takeover interest from U.S. rival Pfizer, traders said.

Bayer shares were 3.65 percent higher at 54.62 euros by 1005 GMT, compared with a 0.8 percent rise on the German benchmark DAX .GDAXI index.

Bayer, which has a market capitalisation of around 40 billion euros ($57 billion), declined to comment. A Pfizer spokesman said the New York-based group did not comment on market speculation.

Bayer, which boasts a healthy pipeline of new drugs and an attractive over-the-counter medicines business, has been a rumoured takeover target in the past.

Any acquisition by a pure pharmaceutical company, however, would be complicated, since it would require the break-up of the chemical-drugs hybrid. Bayer is also a top global player in plastics and in agrochemicals.

For Pfizer, buying Bayer would bring an added complication in that the U.S. group only recently
sold off its non-prescription drug business to Johnson & Johnson.

Pfizer has a history of doing mega-deals but investors have been disappointed by past acquisitions that have failed to curtail its reliance on ageing blockbusters, including cholesterol fighter Lipitor, which goes off patent in 2011.

The company makes $13 billion a year from Lipitor and needs new products to offset sales declines of this and other products.

Pfizer became the global industry leader by buying Pharmacia and Warner-Lambert during the past decade, but its stock is trading at 11-year lows because its laboratories have failed to deliver enough new drugs.

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 HealthCares 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.

Bayer Healthcare plans to integrate DIREVO Biotechs research and development (R&D) personnel into Bayer Schering Pharmas global drug discovery organization. The site in Cologne will be maintained and integrated into Bayer Schering Pharma as a center of expertise for biologicals alongside the global R&D centers in Germany (Berlin and Wuppertal) and the USA (Berkeley).

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.

Today Bayer Schering Pharma is among the top ten biologicals companies in the world. We are committed to further strengthen our biologicals portfolio, and DIREVOs leadership in protein engineering provides promising opportunities for further business growth,said Arthur Higgins, CEO of Bayer HealthCare AG.

With this deal, we emphasize our position as a recognized leader in protein engineering. Bayer HealthCare is our owner of choice not only because of the excellent perspectives for our projects but also due to the close geographic proximity,said Thomas von Rüden, CEO of DIREVO Biotech AG. We feel that this is in the best interest of our former owners and our employees. As part of Bayer Schering Pharma, we will further develop our expertise and knowledge in biopharmaceutical research.

A podcast on this topic can be found here:

6 September 2008 DIREVO Biotech

DIREVO Biotech Acquired by Bayer HealthCare

DIREVO Biotech AG announced today its acquisition by Bayer HealthCare in an all cash deal at a transaction value of Euro 210 Million (approx. $300 Million). DIREVO Industrial Biotechnology GmbH, a wholly owned subsidiary of DIREVO Biotech AG, is not subject to this transaction and has been sold in a separate deal to a group of financial investors.

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.

Bayer Healthcare plans to integrate DIREVO Biotech
s research and development (R&D) personnel into Bayer Schering Pharmas global drug discovery organization. The site in Cologne will be maintained and integrated into Bayer Schering Pharma as a center of expertise for biologicals alongside the global R&D centers in Germany (Berlin and Wuppertal) and the USA (Berkeley).

With this deal we emphasize our position as a recognized leader in protein engineering. Bayer HealthCare is our new owner of choice not only because of the excellent perspectives for our projects but also due to the close geographic proximity,said Thomas von Rüden, CEO of DIREVO Biotech AG. We feel that this is in the best interest of our former owners and our employees. As part of Bayer Schering Pharma we will further develop our expertise and knowledge in biopharmaceutical research.

Today Bayer Schering Pharma is among the top ten biologics companies in the world. We are committed to further strengthen our biologicals portfolio, and DIREVOs leadership in protein engineering provides promising opportunities for further business growth,said Arthur Higgins, CEO of Bayer HealthCare AG.

DIREVO was advised by Mummert & Company Corporate Finance GesmbH and Mayer Brown LLP.

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 received from its parent company DIREVO Biotech AG, which was recently acquired by Bayer HealthCare AG, exclusive access to the DIREVO technology platform for all markets and applications outside the field of biopharmaceuticals development and has the rights to duplicate the DIREVO technology platform and for its application in its field of business. The Company currently has a total of 17 full time employees and receives administrative and technical services from the parent company until successful build up of its own capabilities which is expected to be completed within a year from now.

This is part of the overall company strategy towards maximizing the value of DIREVOs technologies and capabilities, said Dr. Thomas von Rüden, CEO of DIREVO Biotech AG.

Having dedicated investors to the IBT business and having closed our series A financing will enable DIREVO Industrial Biotechnology GmbH to rapidly build-up our own capabilities in protein engineering and strain optimization, Anindya Mukherjee, Managing Director of IBT GmbH, added.

Following the tremendous success story with the DIREVO Biotech AG acquisition by Bayer HealthCare AG, we are now looking forward to building a leading Industrial Biotechnology company, concluded Prof. Dr. Heinrich Schulte, speaking for the group of investors.

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.

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.

The company is lead by Mr. Anindya Mukherjee, who joined DIREVO from DSM in the year 2007, and Dr. Hans-G
ünter Brünker, who joined DIREVO coming from amaxa AG beginning of the year 2008. Additional members of the senior management team are Dr. Henrik Moellgaard as Head of R&D, joining from Christian Hansen in 2007, and Dr. Simon Curvers Managing Director of AC Biotec GmbH that was acquired in 2007.

DIREVO Industrial Biotechnology GmbH is privately held and located in Cologne, Germany. Additional information is available at:

About Bankhaus W
The W
ölbern Group initiates private equity investments via fund solutions of the issuing house Wölbern Invest AG and direct investments via Wölbern EquityPartner AG, 100%-subsidiary of Bankhaus Wölbern. The inducement of the investments within the frame of fund solutions is Prof. Dr. Heinrich Maria Schulte, Wölbern-Owner, medic and entrepreneur. The investor and co-founder of successful biotechnology companies is setting new investment trends with investments in new industries as well as in classical buyouts.

About NRW.Bank
As the state development bank of North Rhine-Westphalia, NRW.BANK has implemented a wide range of financial development tools. Promoting technology and innovation is one of the main tasks of NRW.BANK. The NRW.BANK.Venture Fonds with a total volume of EUR 40 million is able to provide equity financing for early stage companies. Financing for technology-oriented companies in the seed phase is offered by the NRW.BANK.Seed Fonds. Mid cap companies with strong growth potential benefit from the NRW.BANK.Mittelstandsfonds, which invests equity capital up to 7 million. With total assets of approximately EUR 150 billion, NRW.BANK is the largest institution among Germany
s regional development banks. More information:

About TVM Capital Life Sciences
The TVM Capital Life Sciences Practice with ?820 million ($1.26B USD) under management is one of the largest venture and growth investors in biotechnology and pharmaceuticals in Europe and the US, with a growing presence in Asia and the Middle. Twenty years of successful investing and value creation, in traditional early and late-stage venture as well as venture growth and growth capital, makes the TVM Capital Life Science Practice a unique partner for the needs of the biotechnology and pharmaceutical industry. Founded in 1983, TVM Capital is headquartered in Munich with offices in Boston and New York. More information:

About Danisco A/S
With a rich and innovative portfolio, Danisco is a world leader in food ingredients, enzymes and bio-based solutions. Using nature
s own materials, science and the knowledge of our 9,500 people, we design and deliver bio-based ingredients that meet market demand for healthier and safer products. Daniscos ingredients are used globally in a wide range of industries ? from bakery, dairy and beverages to animal feed, laundry detergents and bioethanol ? offering functional, economic and environmental benefits. Headquartered in Denmark and operating from more than 120 locations, Daniscos key focus is to become our customersFirst choice and a truly market-driven global business. In addition, we have one of the most efficient sugar production platforms in Europe. Find out more at

About Sparkasse K
Sparkasse K
ölnBonn is the largest communal savings bank under public law in Germany. Besides a full range of banking services to retail and corporate customers they also offer equity solutions: Private equity and Mezzanine for established midsize companies and venture capital for innovative high-growth companies. The venture capital investments of Sparkasse KoelnBonn are always realized together with other investors well versed in the particular industry and are concentrated on the area around the two cities Cologne and Bonn. Biocampus Cologne, one of the major biotechnology parks in Germany, where DIREVO is located, is also part of their portfolio.

About Signet Healthcare Partners
Signet Healthcare Partners was founded in 1998 with the establishment of the Corporate Opportunities Funds. Since 1998, we have organized three funds and completed investments in approximately 27 companies. The team is comprised of five professionals with principal offices in New York City. This team brings over 100 years experience of collective healthcare experience in the specialty pharmaceutical, medical device, private equity and investment banking businesses. For the past nine years, Signet Healthcare has maintained its dedicated focus to diversified healthcare investments - primarily serving as lead investor to expansion stage companies engaged in specialty pharmaceuticals, medical devices and the pharma services industries.

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.

We are looking to safeguard supplies out of Shanghai in the long term for the rapidly growing Asian market in particular, thereby actively benefiting from growth in this region,explained Dr. Joachim Wolff, head of the Coatings, Adhesives, Specialties (CAS) Business Unit and member of the Executive Committee of Bayer MaterialScience, at the official inauguration. This sees us underpinning our leading international role on the polyurethane raw materials market and strengthening our long-term presence in Asia. At the same time, we are living up to the responsibility we have set ourselves to maintain sustainable economic development, for example through the Bayer Climate Program,he added.

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.

The CAS Business Unit has also invested heavily in its Polymer Research & Development Center in Shanghai to provide state-of-the-art analytical processes, ensuring high, consistent product quality and offering customers locally-based, cutting-edge technical support. High-quality products and comprehensive know-how thus deliver innovative, customer oriented system solutions.

The CAS Business Unit is looking to use its wide-ranging portfolio of waterborne dispersions to secure and expand its excellent position on the market throughout the world. Ongoing development of the product portfolio is key to this, with our focus on low-VOC, cosolvent-free dispersions that have outstanding green credentials while also offering maximum degree of freedom in formulation development,said Dr. Wolff in conclusion.

About Bayer MaterialScience:
With 2007 sales of EUR 10.4 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 2007, Bayer MaterialScience had 30 production sites and employed approximately 15,400 people around the globe. Bayer MaterialScience is a Bayer Group company.

October 17, 2008 Bayer 

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 now broken ground for a 250,000 tons/year toluene diisocyanate (TDI) plant at BISS which is scheduled to come on stream in 2010. With these projects Bayer MaterialScience is emphasizing its commitment to the growth markets in China and the whole Asia Pacific region. Innovative process technologies strengthen our cost leadership in isocyanate production and thus our competitiveness,said Patrick Thomas, Chairman of the Board of Management of Bayer MaterialScience, at a press conference in Shanghai on Friday.

MDI is a raw material used primarily for the production of polyurethane rigid foams, which have better insulating properties than any other material on the market. Two of their main applications are in the refrigeration chain and as thermal insulation in the building industry. TDI is used in large quantities in the production of flexible polyurethane foam for upholstered furniture, mattresses, and car seats.

For Bayer MaterialScience, China is already the most important market in the Asia Pacific region and currently its third largest national market worldwide.
We are confident that our materials will continue to exhibit good growth rates there,said Thomas. China is already the worlds largest single market for polycarbonates, and it is expected to become the largest global consumer of polyurethanes by 2015.

Shaping the future in China with advanced process technology

The new facilities set standards for energy-efficient and environmentally-responsible production. The new TDI facility in Shanghai, for example, features the modern Gas Phase Process. This enables energy savings of up to 60 percent compared with a conventional plant of the same size. The new process technology uses up to 80 percent less solvent, and cuts investment costs for this type of large-scale facility by some
20 percent.
This enables us to further consolidate our leading position on the world market for polyurethanes with optimized cost structures,explained Patrick Thomas.

In addition, the oxygen depolarized cathode (ODC) technology used to recycle chlorine at the Bayer Integrated Site Shanghai yields 30 percent savings in energy use compared with conventional technology. Thomas pointed out how the company is contributing to China
s efforts to improve the energy-efficiency of its industries: By using advanced technology and an energy-efficient setup at the site, the Bayer Integrated Site Shanghai is able to save approximately 100 megawatts compared with conventional production plants. These savings can supply up to 10,000 homes,he said.

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.

Products for improved climate protection are another growth driver in China. Bayer materials help to improve housing insulation, for example, by contributing to reduced heating costs and lower CO2 emissions. Over its entire life cycle, rigid polyurethane foam saves around 70 times as much energy as is used in its production. In addition to polyurethane insulating boards, multiwall sheet made of Makrolon polycarbonate is another example of the energy-efficient use of modern materials.

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

Two over-the-counter Bayer AG aspirin products that contain dietary supplements have not been proven to work and are being sold illegally, 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.

"These are not FDA-approved products," agency spokeswoman Rita Chappelle said. "They are selling products that are illegal."

The FDA stopped short of calling for the pain relievers to be removed from store shelves but urged the company to take "prompt action" or else face legal action.

But Bayer defended the medications and its right to market them.

"We stand behind both products and all marketing claims made in their support," the German drugmaker said in a statement.

The company added that its advertisements tell buyers to check with their doctors before taking the combination aspirins. Bayer Aspirin with Heart Advantage also tells consumers the drug does not replace cholesterol-lowering medication.

Bayer Aspirin with Heart Advantage contains
plant sterols植物ステロール and claims on its packaging to help control cholesterol, while Bayer Women's Low Dose Aspirin + Calcium claims to help strengthen bones and prevent osteoporosis.骨粗しょう症
(植物ステロールは、広く植物に含まれる成分で、特に豆類、穀類の胚芽に多く含まれている。 )

"These statements on the labeling send consumers a mixed message about the purpose of the product and the duration for which it can be safely used," the FDA wrote in an Oct. 27 warning letter to the company released on Tuesday.

FDA officials gave Bayer 15 days to respond to the warning. To comply, the drugmaker could stop selling the products or conduct clinical trials and seek FDA approval.

If the company does not take proper action, the FDA could seize the product, seek an injunction or take other legal steps. Bayer said it was reviewing the agency's letter.

The drugmaker's marketing of its Heart Advantage aspirin is also the subject of a congressional investigation.

Earlier this month, the U.S. House of Representatives Energy and Commerce Committee began probing whether Bayer misled the public by marketing the combination product directly to consumers.

"Our investigation will continue," committee Chairman John Dingell, a Michigan Democrat, said.

In its letter, the FDA confirmed Bayer's actions violated the agency's policies.

Unlike drugs,
supplements such as vitamins and herbs do not have to be proven safe and effective before they can be sold in the United States. But adding them to already-approved drugs makes them entirely new products that must be subject to FDA review before being sold, the agency said.

At the same time, the FDA has approved a variety of health claims for certain foods and supplements that manufacturers can include on their product packaging, such as the impact of plant sterols in reducing heart disease.

Bayer earlier told the agency it was within its rights to market its Bayer Heart Advantage, the FDA said citing a separate Aug. 18 letter from the company.

In it, the drugmaker said the FDA and the U.S. Federal Trade Commission support public education about aspirin's heart benefits, "and that a ban on cardiovascular
心臓血管 claims in consumer labeling for Bayer Heart Advantage would violate Bayer's rights under the First Amendment," according to the FDA.

But the agency rebuked that argument, saying the U.S. Constitution does not protect speech that is false, misleading or concerns illegal activity.

It is the agency's duty to scrutinize new products because otherwise consumers could waste money and "more importantly, rely to their detriment on a drug product which did not go through the requisite regulatory review, and could prove harmful," it said.

The American Herbal Products Association, which represents supplement manufacturers, has been seeking FDA guidance on the marketing of combination drug-supplement products, but criticized the agency's action.

"FDA could have developed a streamlined science-based policy to control the introduction of health promoting products, rather than forbid all combination products," the group's president, Michael McGuffin, said.

After the FDA warning, Bayer shares trimmed gains to close up about 1 percent on the German exchange.

2008/11/17 Bayer    

Bayer builds new chlorine recycling plant for TDI production in Shanghai
  Cost leadership through implementation of best available technologies / License agreement with Sumitomo Chemical

Bayer MaterialScience 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 new 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 companys innovative gas phase phosgenation process and is scheduled to come on stream in 2010.

The new chlorine recycling technology was awarded the prestigious Green & Sustainable Chemistry Award in Japan for being both energy-efficient and environmentally friendly. It enables a reduction in energy consumption of more than half versus the conventional process.

By introducing this new chlorine recycling process at Bayer MaterialScience we continue to implement the best and most innovative process technologies to strengthen our leadership position in the polyurethane industry,says Peter Vanacker, head of the Polyurethanes Business Unit and member of the Executive Committee of Bayer MaterialScience.

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.

About Bayer MaterialScience:
With 2007 sales of 10.4 billion euros, 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 2007, Bayer MaterialScience had 30 production sites and employed approximately 15,400 people around the globe. Bayer MaterialScience is a Bayer Group company.

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.

We are continuously increasing our presence in the Asia Pacific Region where China is our key growth driver. In our new R&D Center in Beijing, we will establish a world class R&D team extending our global R&D expertise and capabilities,said Andreas Fibig, Executive Committee member of BHC and Chairman of Bayer Schering Pharma AGs Board of Management. Beijing will be an important site for our global innovative drug development.

According to IMS Health, Bayer is the number one healthcare company in China and the growth rate in China was around 43% in 2007. China is the third largest market worldwide for the Bayer group, and it will become the third country besides Germany and the US to host a Global R&D Center for Bayer Schering Pharma. Highly talented scientific teams will cooperate in Beijing focusing on the development of innovative therapies.

Our goal is to build a world class organization here in Beijing that will lead drug development not only for China but also for other Asian countries.said Kemal Malik, member of the Board of Management of Bayer Schering Pharma AG, Head of Global Development and Chief Medical Officer. Our aim is to systematically include Asian patients earlier in global drug development, breaking the tradition of US and EU first.

Bayer Schering Pharma AG is a worldwide leading specialty pharmaceutical company focusing on womens healthcare, cardiology, oncology and diagnostic imaging. It possesses high competence in these therapeutic areas with a strong development pipeline.

Constantly improving the quality and output of research is crucial for a pharmaceutical company to bring novel therapies to patients.said Andreas Busch, member of the Board of Management of Bayer Schering Pharma AG, Head of Global Drug Discovery. We believe that China bears tremendous potential in terms of innovation. In addition to the establishment of development functions, we will also launch the Global Drug Discovery Innovation Center here in Beijing where our scientists will expedite new innovative approaches together with our Chinese partners. By doing so, we also want to support the further development of local expertise.

Along this line, Bayer Schering Pharma also announced that it is currently in advanced discussions with Tsinghua University 清華大学 on entering into a unique strategic partnership to pursue research collaborations for the discovery of new disease-related targets in the core areas of Bayers pharmaceutical research. With this partnership Bayer would be the first multinational company in China to enter into a partnership with such a respected and renowned Chinese university.

China is home to a large pool of skilled medical and scientific talents. Our goal is to work closely together with our Chinese partners to support China conducting their own R&D activities and at the same time we will be able to strengthen our own R&D capabilities,said Andreas Fibig.

About Bayer
The Bayer Group is a global enterprise with core competencies in the fields of health care, nutrition and high-tech materials. Bayer HealthCare, a subsidiary of Bayer AG, is one of the world
s leading, innovative companies in the healthcare and medical products industry and is based in Leverkusen, Germany.The company combines the global activities of the Animal Health, Consumer Care, Medical Care and Pharmaceuticals divisions. The pharmaceuticals business operates under the name Bayer Schering Pharma AG. Bayer HealthCares aim is to discover and manufacture products that will improve human and animal health worldwide. Find more information at

About Bayer Schering Pharma
Bayer Schering Pharma is a worldwide leading specialty pharmaceutical company. Its research and business activities are focused on the following areas: Diagnostic Imaging, Special Medicines, General Medicine and Women's Healthcare. With innovative products, Bayer Schering Pharma aims for leading positions in specialized markets worldwide. Using new ideas, Bayer Schering Pharma aims to make a contribution to medical progress and strives to improve the quality of life. Find more information at