Bayer CropScience plans further growth in the US
"We are investing heavily in R&D infrastructure such as laboratories, greenhouses and breeding stations as well as new production capacities and seed processing facilities," Condon explained. He said that the company aims to grow faster than the U.S. market.
Bayer CropScience plans to invest close to US$ 1 billion (EUR 700 million) in Capital Expenditures (CAPEX) in the United States between 2013 and 2016, mainly to ramp up research and development and to expand a world-class product supply of its top crop protection brands. These expenditures are part of a global investment program Bayer CropScience started last year, with a total CAPEX for the period 2013 to 2016 of EUR 2.4 billion (approximately US$ 3.3 billion).
Consolidating and expanding R&D organization is key for Bayer CropScience
Bayer CropScience seeks to better leverage the full research and development capabilities by consolidating and expanding its global R&D organization. "Our integrated West Sacramento site represents a major step forward in our efforts to enhance our vegetable seeds and biological crop protection innovation efforts," said Dr. Adrian Percy, Global Head of Research and Development at Bayer CropScience. "The investment into this state-of-the-art facility creates an environment where our researchers and experts can find the best possible conditions to discover solutions that growers across the globe can depend on to produce high-quality food in a sustainable manner."
The new West Sacramento site, which also serves as the global headquarters of Bayer CropScience’s Biologics Business, has the capacity to house up to 300 employees. The approximately US$ 80 million facility is situated on 10 acres of land and features a 100,000-square-foot building and a 35,000-square-foot pilot plant to support research and development of biological crop protection products, as well as a 30,000-square-foot Vegetable Seeds research building. The facility will also include a 2,000-square-foot greenhouse and five acres of nearby land for future greenhouse space.
Expansion of production capacities in the USA
In addition to building its R&D network in the United States, Bayer CropScience is also investing significantly in the production capacities of its crop protection products.
"Along with capacity expansions at our Muskegon, Michigan and Kansas City, Missouri sites, the construction of our new plant in Mobile, Alabama for the production of our herbicide Liberty™ will contribute significantly to our future growth plans," stressed Condon, who pointed out that the increased production of Liberty™ will help U.S. growers fight weed resistance, a key challenge for U.S. farmers.
"The single biggest investment item in the USA is our planned capacity expansion of Liberty™ herbicide. This is a strong signal to the market as Liberty™ is the only non-selective herbicide that controls glyphosate resistant weeds," said Jim Blome, president and CEO for Bayer CropScience LP and Head of Crop Protection for the North American region. "Two-thirds of our planned investments in the United States between 2013 and 2016 are intended to expand our production capacities. This includes measures to further optimize our supply chain in order to increase flexibility and thrive despite market volatility," Blome added.
For more information:
Bayer CropScience AG
Tel. +49 2173 38-3125
Email: utz.klages@bayer.com
Beth Roden
Bayer CropScience LP
Tel.: +1 (919) 549-2030
Email: beth.roden@bayer.com