SHANGHAI (Nov. 16, 1:05 p.m. ET) — Bayer AG announced during its Nov. 16 dedication of a new toluene diisocyanate (TDI) plant in Shanghai that it plans to further expand production, distribution and research in Asia and considerably increase its sales in the region — to 11 billion euros ($14.8 billion) by 2015.
“We aim to achieve a more than 60 percent increase in our sales in Asia by 2015,” Chairman Marijn Dekkers said at a Shanghai news conference. Of the 11 billion euros in 2015, Greater China will account for 6 billion.
Dekkers also officially inaugurated Bayer Material Science's 250,000 metric tons per year gas-phase facility for TDI — used largely in flexible foams — at its site in Shanghai.
Bayer also plans to spend 1 billion euros to expand its MDI (methylene diphenyl diisocyanate) capacity in Shanghai to 1 million metric tons per year, increase its polycarbonate capacity to 500,000 metric tons per year and build a new HDI (hexamethylene diisocyanate) line that will raise capacity by 50,000 metric tons per year.
“These are considerable capital expenditures involving significant capacity expansions. It goes without saying that we use the very latest technology in our facilities,” Dekkers stressed.
Bayer already has a significant proportion of its business in Asia: 6.9 billion euros in 2010, including 2.9 billion euros in Greater China.
“We have made capital expenditures of 3.4 billion euros in Asia over the past 10 years, creating a basis for outperforming market growth in this region,” Dekkers said.
In India, sales are expected to grow from just over 50 million euros last year to about 1 billion euros. Sales in Japan are planned to rise from just under 200 million euros to around 2.4 billion euros.
To meet these targets, Bayer intends to improve the availability of its products in Asia.
“We already operate major production facilities here and intend to go on expanding in the future,” said Dekkers. He said Bayer will continue to expand its distribution network to serve the subcenters and rural areas as well.