Economy
Bayer to play role in shaping China's environmental future
By Bao Wanxian (China Daily)
Updated: 2010-03-04 08:03
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Beijing: Bayer AG, German chemical and pharmaceutical company, emerged from last year's financial storm with one of its strongest performances ever and has set it sights on expansion in China.
The company fared exceptionally well in China. It achieved 2.1 billion euro ($2.85 billion) in sales revenue in the country, a 10.3 percent year-on-year increase, making it Bayer's third largest single market globally and the largest single market in the Asia-Pacific region.
"Our business performance in Greater China in 2009 was again gratifying," said Werner Wenning, chairman of the company's Board of Management.
Despite the global economic downturn, Bayer aims to continue its growth in China, and to focus on developing local talent. Currently, all Bayer's subgroups, including Bayer Healthcare, Bayer CropScience and Bayer MaterialScience, are present in China and employ a total of 8,300 local people.
According to Wenning, China faces major global challenges, including climate and environmental protection, sustainable economic development and health care. These three demands are the focus of Bayer's expansion plans.
Bayer continues to invest enthusiastically via its subgroups. The company aims to substantially expand its research and development activities in China to benefit local people. "That is why almost a year ago, Bayer healthcare announced the establishment of a pharmaceutical research and development center in Beijing, with investment up to 100 million euro ($136 million) within five years."
Sales for the Bayer Healthcare subgroup, increased by a remarkable 34 percent year-on-year in 2009 to 765 million euro ($1 billion).
In partnership with the Chinese Health Ministry, Bayer will invest, over five years, 2 million euro ($2.7 million) to the "Go West" project in China to support upgraded healthcare service to China's rural areas. As well as healthcare Bayer is interested in crop protection. With sales of 106 million euro ($144 million) in China last year, Bayer CropScience subgroup is the second largest company in crop protection industry in China.
So far, the company has already expanded its crop science-related production facilities in east China's Hangzhou city into a regional manufacturing hub for crop protection products in Asia.
Wenning is confident about this area of the business. He expects further growth of Bayer's CropScience subgroup "as the demand for food, feed and raw materials in the country will increase."
Wenning said that with innovative crop protection solutions, Bayer aims to help provide safe and sustainable agriculture in China, and safeguard the food supply for local people.
Environment remains a key focus for Bayer.
China is the first country in which Bayer implemented its carbon footprint program and the China Environmental Protection Foundation recently awarded Bayer the China Environment Prize in recognition of such efforts.
"Climate protection will remain a top priority in the future for Bayer," said Wenning. He said that Bayer is committed to playing an active role in counteracting the negative effects of climate change in China.
"Standing at the forefront of sustainability, Bayer will make its own contribution to environmental protection both industrially and socially."
Globally Bayer achieved the third-highest result in the history of the company with earnings before interest, tax, depreciation and amortization of nearly 6.5 billion euro ($8.8 billion).
"We were successful in a difficult environment last year, and we are optimistic for the future," said Wenning.
