German Bayer fuses 4 units to tap growth in China
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Bayer MaterialScience yesterday announced it has consolidated its four units in China, now its third-largest market globally, to offer improved services and prepare for bigger growth in the Chinese market.
The units have been combined under Bayer MaterialScience (China) Co, which will have a total investment of 2.1 billion euros (US$2.95 billion) in fixed assets in Shanghai by 2012. It will also boast integrated production, marketing and sales, as well as research and development activities. It will source 4 billion yuan (US$585.93 million) worth of products annually from China.
"For Bayer MaterialScience, China is currently the third-largest market worldwide and is becoming a growth engine for our global business," said Michael Koenig, president of Bayer MaterialScience in China.
The German company saw slower growth in China last year due to falling orders in the first half, but it still outperformed markets elsewhere. Company officials are positive about this year as consumption in and outside China is seen to pick up.
The automotive industry, with its continuing need for materials, will continue to drive growth in business after it expanded by double digits in 2009 thanks to the government's stimulus measures, according to Michelle Jou, vice president of the Polycarbonates Business Unit.
An additional manufacturing facility is set to be completed by the end of 2010 with an initial annual production capacity of 250,000 tons of TDI (toluene diisocyanate), which is widely used as a component in car seats and furniture such as mattresses and sofas.
Hoping to cash in on China's goal to improve energy efficiency and combat climate change, the firm plans to launch eco-commercial building projects.
