Bayer's expansion plans in Asia-Pacific

25-Sep-06

Bayer AG of Germany has reiterated its commitment to expansion in Asia-Pacific for its three core businesses of health care, nutrition and high-tech materials. Asia Pacific is Bayers' largest market for its core businesses, with sales in the region growing by 15.5% last year and accounting for 17% of Bayer's global sales last year. The company will continue diversification in petrochemical areas through Bayer MaterialScience, for which Bayer has an investment budget of 6 billion until 2010. Over 50% of the amount, has been invested in China to establish an integrated polymers production site at Shanghai Chemical Industry Park through 2009. The rest will be invested in other countries such as Taiwan, Japan, India and Thailand. Asia-Pacific is the biggest market for polycarbonate in terms of volume, with 1.5 million tons sold last year, more than half of the world market of 2.7 million tons. Of this volume, Greater China alone accounts for 650,000 tons, with consumption growing around 18% pa. Bayer's 200,000 tpa polycarbonate plant in Map Ta Phut, Rayong, was the first polycarbonate plant in Asia-Pacific before the Shanghai integrated production site. The Shanghai plant has a production capacity of 100,000 tpa, which is to be doubled in 2008. The company plans to set up Bayer System House near Bangkok, Thailand, by mid-2007, to serve as the formulation centre for polyurethane products to support customer demand in Thailand and other countries in Southeast Asia such as Vietnam, Indonesia and Malaysia. It will start operating in mid-2007. Bayer is also constructing its polyurethane plant in Thailand that will be opened by mid-2007.