Bayer to pump €650m into future of coatings and adhesives

02 April 2009 03:32  [Source: ICIS news]

NUREMBERG (ICIS news)--Bayer Material Science plans to invest at least €650m ($867m) in the future of coatings, adhesives and specialities business in the next few years, its senior executive said late on Wednesday.

Speaking from the European Coatings Show in Nuremberg, Dr. Joachim Wolff, Head of Business Unit Coatings, outlined Bayer’s intention to invest at least €200m in capital expenditures and a further €450m in research and development of coatings and adhesives between 2009 and 2012.

"Climate and environmental protection are key challenges that we will tackle resolutely in different ways with co-ordinated products and solutions," Wolff told a news conference.

The company's head of External Communications, Andrea Knebel-Kyriakidis, said demand was expected to rise again after the economic crisis was over. "This is the right time to invest in innovation as greener applications will be required in the not-too-distant future… we are anticipating the demand and reacting to it." 

The announcement coincided with the launch of 25 new waterborne products that limit or remove the use of solvents in coatings altogether. A source at Bayer explained that much of the planned research and investment will aim to further develop these applications.

"Waterborne applications certainly have been picking up speed over the last few years," said a key epoxy resin manufacturer. "The technology is not specifically new but the variety of products offered is always increasing… There are ‘green’ values to the applications, but not too many other benefits."

However, Dr. Wolff projected growth rates in waterborne raw materials to be above the average market. "We can access ‘green’ value chains and thus create added value for our customers."

($1 = $0.75)

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By: Stephanie Wilson
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