People's Republic of China is a focus of Bayer's investment

Aim to double sales by 2005

29-Oct-2001

China is becoming a key investment focus for Bayer. The German health care and chemicals group plans to invest US$ 3.4 billion (about EUR 3.8 billion at the current exchange rate) in the People's Republic by 2008. The cornerstone of this investment program is an integrated production complex at Caojing, near Shanghai, which alone will require capital spending of US$ 3.1 billion (EUR 3.4 billion).

Construction of the complex will start officially on November 2, 2001 during the planned visit to China by the German Chancellor. Earlier, at a ceremony in the Great Hall of the People, Bayer will sign a basic agreement with the Shanghai Chemical Industry Park Company concerning the planned chemical and polymer production facilities in Caojing.

Bayer Management Board Chairman Dr. Manfred Schneider summed up the significance of this agreement as follows: "Developing the new site at Caojing is a major step toward realizing our expansion plans in the Asia-Pacific region and provides a clear signal of our confidence in the growth prospects for the Chinese economy. With this project, the People's Republic clearly develops into a major focus of Bayer's international investment plans." He said the company plans to at least double its sales volume in the Greater China region by 2005. In 2000 Bayer posted sales of about US$ 1 billion (EUR 1.1 billion) in the People's Republic of China, Hong Kong and Taiwan, making the region Bayer's second largest market in Asia-Pacific after Japan.

Major German investment in China

In the chemical park at Caojing, about 30 miles south of downtown Shanghai, Bayer plans to erect a network of world-scale plants to manufacture coating raw materials, thermoplastics, polyurethane raw materials and basic chemicals – products that have a variety of uses in the automotive, electronics, furniture and construction industries. The US$ 3.1 billion (EUR 3.4 billion) outlay makes this one of the largest investments by German industry in China.

The groundbreaking for the first of the Caojing plants will take place on November 2, 2001 in conjunction with the dedication of Bayer's new polymer research center in Pudong. In the presence of high-ranking government officials, Bayer-CEO Dr. Schneider as well as Dr. Udo Oels, Management Board representative for the Greater China region, and Dr. Elmar Stachels, Bayer country group head for Greater China, will give the go-ahead for construction to begin.

Bayer has some 2,200 employees in the Greater China region, achieving sales in 2000 of about US$ 1 billion (EUR 1.1 billion), including some US$ 700 million (EUR 750 million) in mainland China. Bayer owns majority interests in a total of 17 companies in the People's Republic. Twelve manufacturing companies in the areas of health care, agriculture, polymers and specialty chemicals have already begun operating, with local production accounting for an increasing proportion of their business.

https://www.chemeurope.com/en/news/5632/people-s-republic-of-china-is-a-focus-of-bayer-s-investment.html