Bayer CropScience steps up investment plans
Bayer CropScience is on track to grow annual sales toward EUR 9 billion in 2013 and toward EUR 10 billion in 2015.
“Since 2007 we have continuously expanded our business with record sales, and we are optimistic about the future development,” said Bayer CropScience CEO Liam Condon at the company’s annual press conference in Monheim, Germany.
Against the background of strong demand for its products, the company is adding EUR 1 billion to its investment program, bringing total capital expenditures for the period 2013 to 2016 to approximately EUR 2.4 billion.
As a result of the accelerated investment program, the production volume of key active ingredients for crop protection products is expected to increase significantly. “Many industries today are facing overproduction. At Bayer CropScience, we are in a completely different situation: A growing global population, changing diets and increasing weather volatility are affecting food supply and need to be addressed today,” said Condon.
“Demand from farmers for our products is increasing so strongly that we’re significantly stepping up our supply chain capacity to serve farmers around the world with much needed innovative agricultural solutions,” added Liam Condon, describing the challenge: “About 900 million people remain hungry today and the world population is growing strongly. We need to raise agricultural productivity and at the same time advance sustainability in farming and ensure protection of the environment. We aim to achieve this by developing innovative solutions and services that can help agriculture to contribute to the healthy development of society.”
About EUR 380 million investment in new glufosinate-ammonium plant in the United States
One integral element of Bayer CropScience’s investment plans is the construction of a new plant in Mobile/Alabama for the production of the herbicide glufosinate-ammonium, marketed in the United States under the brand name Liberty. The start-up of the new plant is anticipated probably for the fourth quarter of 2015, in time for the 2016 growing season. “With about EUR 380 million earmarked for this new facility, this is the biggest single construction project in the history of Bayer CropScience,” said Condon. Along with capacity expansion projects currently under way at other sites, this new facility will contribute significantly to the company’s target of more than doubling global product supply for this important active ingredient.