Bayer CropScience to invest Euro7bn
20 Sep 2012
Monheim, Germany - Bayer CropScience (BCS) has unveiled plans to invest Euro7 billion between 2011 and 2016 in R&D and to expand its production capacities and seed processing facilities.
Euro5 billion will be invested in the company’s R&D operations to develop new solutions for the farmer in seeds, novel chemical and biological crop protection.
The aim is to strengthen the BCS agricultural-product pipeline with new seed and crop protection offerings that have a combined peak sales potential of at least Euro4 billion.
“We believe the products that are in our pipeline of new seed, small molecules and biological crop solutions hold significant promise in the market,” said CEO Sandra Peterson.
“Our goal is to develop integrated crop solutions that provide farmers with a full package of products and services for the entire growing cycle - from planting the seeds to helping their harvest arrive fresh and in perfect shape on the retail shelves,” added Dr. C. David Nicholson, head of R&D.
To achieve this, BCS has integrated its R&D operations across all its three divisions and disciplines. This is intended to help it better leverage its full R&D capabilities - spanning weed, pest and disease management to stress-tolerance and yield enhancement - to focus on key crops.
BCS also plans to invest in new production capacities and seed processing facilities to meet rising global demand for agricultural raw materials - allocating Euro2 billion for such investments within the same time frame.
From 2011 to 2016, the company is to build up further facilities for the production of crop protection products as well as seed breeding, production and processing facilities. The plans include investment in advanced process technology, an increased its global asset footprint and global supply flexibility.
“Given the strong global demand we expect to see for our products, we are significantly expanding the capacities of our top crop protection active ingredients, including our best-selling brands like the Fox fungicide family and Liberty / Basta herbicides,” said Achim Noack, BCS global head for product supply.
BCS has recently completed a $500-million acquisition of US biological pest control company AgraQuest. The deal, said Peterson, gives the company a foothold in the biologics market, which is expected to triple to almost $4 billion by 2020.
The CEO also said that the company’s seeds business - formerly referred to as BioScience - is set to continue a rapid pace of growth.
“We expect Seeds to double to around 20% its contribution to the company’s overall sales by 2016,” she revealed. The unit recorded a 21 percent leap in sales in the first half of this year on the back of significant growth in broad acre crops.
