Bayer CropScience to invest $1 bn for capex in US

In a development that showcases growing optimism among chemical companies about US economy, Bayer CropScience is planning to invest close to $ 1 billion (Euro 700 million) in capital expenditures (CAPEX) in the US between 2013 and 2016, mainly to ramp up research and development and to expand a product supply of its top crop protection brands. These expenditures are part of a global investment program Bayer CropScience started last year, with a total CAPEX for the period 2013 to 2016 of Euro 2.4 billion (approximately $ 3.3 billion).
 
“We see future growth driven by increasing and sustained demand from customers for improved seeds and innovative crop protection products. We are investing heavily in R&D infrastructure such as laboratories, greenhouses and breeding stations as well as new production capacities and seed processing facilities. The company aims to grow faster than the US market,” said Liam Condon, CEO, Bayer CropScience while inaugurating the company’s new integrated R&D site in West Sacramento, California.
 
Bayer CropScience seeks to better leverage the full research and development capabilities by consolidating and expanding its global R&D organisation. “Our integrated West Sacramento site represents a major step forward in our efforts to enhance our vegetable seeds and biological crop protection innovation efforts. The investment into this state-of-the-art facility creates an environment where our researchers and experts can find the best possible conditions to discover solutions that growers across the globe can depend on to produce high-quality food in a sustainable manner,” said Dr Adrian Percy, Global Head of Research and Development at Bayer CropScience.
 
The new West Sacramento site, which also serves as the global headquarters of Bayer CropScience’s Biologics Business, has the capacity to house up to 300 employees.
 
In addition to building its R&D network in the US, Bayer CropScience is also investing significantly in the production capacities of its crop protection products. “Along with capacity expansions at our Muskegon, Michigan and Kansas City, Missouri sites, the construction of our new plant in Mobile, Alabama for the production of our herbicide Liberty will contribute significantly to our future growth plans,” stressed Condon.
 
Bayer CropScience is also investing constantly in its Seeds business. In June 2014, the company announced plans to expand its North American and global Seeds headquarters in Research Triangle Park (RTP), North Carolina. The RTP site has experienced significant operational growth in recent years, and approximately $ 200 million will be invested through 2016.
 
In addition, the German agrochemicals company is planning to invest approximately $ 90 million in its Cotton Research and Development Laboratory in Lubbock, Texas. Complementing this, Bayer CropScience also invested $ 17 million in the expansion of its Memphis Research and Development site, bringing total greenhouse capacity to 76,000 square feet.