SHANGHAI - Bayer AG plans to increase its
presence in Asia and its revenue in the region to more than 11 billion euros
($14.88 billion) by 2015 by expanding production capacity, distribution network
and research activities, a top executive said on Wednesday.
"We aim to achieve a more than 60 percent
increase in our sales in Asia by 2015. We want all of our subgroups in China to
continue their rapid growth," Management Board Chairman Marijn Dekkers
said in Shanghai on Wednesday.
The German-based pharmaceutical and chemical
company's revenue in the Chinese market grew by 30 percent year-on-year to 2.9
billion euros in 2010. It intends to increase that figure to 6 billion euros by
2015, with its material science business accounting for about 3 billion euros,
healthcare sector for 2.5 billion and crop science for 300 million, Dekkers
said.
In the first nine months of 2011, Bayer's
sales in China totaled 2.2 billion euros, 8 percent of its global sales.
If the company achieves its goal for Asia, its
annual global sales would exceed 11 billion euros by 2015.
Over the past two decades, Bayer's business in
Asia has grown significantly, Dekkers said. Twenty years ago, the region
accounted only for about 10 percent of the global sales, equal to slightly more
than 2 billion euros. By 2001, it was about 15 percent, and by 2010, its 2.9
billion euros in sales in China accounted for 20 percent of its global sales.
"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.
As Bayer's biggest market in Asia and
third-biggest worldwide, China remains strategically important for the
pharmaceutical giant.
Over the past decade, the Chinese economy has
grown by more than 9 percent annually - and is on track to do so in 2011 -
despite the global financial downturn in 2008 and ongoing economic
difficulties.
"As a result, China's economy last year
became the world's second-largest. And we have no doubt that economic expansion
in this country will continue at a similar pace in the coming years. For the
period 2011 through 2015, the International Monetary Fund predicts an average
annual growth rate of nearly 8 percent," Dekkers said.
The eurozone debt crisis has forced many
multinational companies to rethink their strategies, with emerging economies
such as China becoming their focal point for growth, Zhang Youwen, director of
the Institute of World Economy at the Shanghai Academy of Social Sciences, was quoted
as saying by the Jiefang Daily this month.
Also on Wednesday, a new production facility
for Toluene diisocyanate (TDI) -used in the production of flexible foams - was
officially opened at the Bayer Integrated Site Shanghai.
The TDI production facility, with a planned
capacity of 250,000 tons a year, is based on a technology that reduces solvent
use by about 80 percent compared with conventional plants of a similar size. It
lowers energy consumption by up to 60 percent. The technology is significantly
less expensive to use and reduces carbon dioxide emissions by 60,000 tons a
year. In addition, it cuts the investment costs for large-scale plants of this
type by around 20 percent.
Currently, each of Bayer's three subgroups -
Bayer CropScience, Bayer HealthCare and Bayer MaterialScience - has a presence
in China.
Wang Ying
China Daily
Business & Investment Opportunities
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