22 November 2005 12:35 [Source: ICIS news]
LONDON (ICIS News)--Bayer plans to invest over Euro130m ($152.2m) in Japan by 2008, the German chemicals major said on Tuesday.
The capital expenditure investment will span Bayer’s three subgroups, with a greater focus on HealthCare and CropScience, a group spokesman said. He was unable to provide further details of the investments.
Werner Wenning, chairman of the German group, stated: “Japan is the biggest and most successful country for Bayer in the Asia Pacific region. It is our firm intention to further expand our presence in Japan and to continue to grow faster than the market.”
Bayer recorded a 7.8% rise in sales in Japan to Yen149bn ($1.25bn/Euro1.1bn) for the first nine months of the year, making the country the group’s third largest market after the US and Germany.
“All three subgroups are firmly established in Japan,” Wenning said. Bayer Healthcare achieved a 5.6% rise in nine month sales in Japan to Yen73bn, accounting for nearly half the group’s sales in the country. Bayer CropScience reported a drop of sales in Japan to Yen26bn, largely due to the divestment of several products, while Bayer MaterialScience achieved a 24.7% rise to Yen50bn.
Bayer stressed the importance of the entire Asia Pacific region to the group, pointing to an average 5.2% annual sales growth in the region (including Lanxess) between 1990 and 2004 – over twice the group’s worldwide average.
“We aim to raise the proportion of group sales generated in the Asia Pacific region from the current figure of 17% to 25% by 2010,” Wenning said.
Bayer noted that China remains the main focus of its current investment programme.
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