Bayer to move polycarbonates business headquarters to Shanghai

09 December 2010 09:09  [Source: ICIS news]

SINGAPORE(ICIS)--Bayer will be relocating the headquarters for its polycarbonates (PC) business to Shanghai, China, from Leverkusen, Germany, starting next year, taking into account the growing importance of Asia as a customer base, the German chemicals company said on Thursday.

“By moving closer to its customers, Bayer MaterialScience is taking account of the importance of the region for the global polycarbonates market,” the company said in a statement.

It said that the Asia Pacific region currently accounts for about 60% of the world's total polycarbonate market, with the greatest demand coming from China.

Bayer also said it would be investing €1bn ($1.33bn) to expand its facilities in Shanghai.

This included raising the capacity of its existing PC plant by 100,000 tonnes/year to 300,000 tonnes/year and the construction of a new 200,000 tonne/year plant, the company said.

The relocation of Bayer's PC headquarters away from Leverkusen would not affect European production, but would result in a significant number of people required to relocate, a company source said.

"If you look at growth rates for PC [forecast at 5-6% a year until 2015 by market players] it's important in order to keep market share to grow significantly. And we're going to do that in China," the source added.

PC has applications in the automotive, electrical and electronics, and construction industries.

Additional reporting by Mark Victory

($1 =
0.75)

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