Bayer to invest 3.4 bn euros in agribusiness
German pharmaceutical and chemicals giant Bayer said on Thursday it would invest more than 3 bn euros through to 2012 in research and development to tap into the global farm products boom.
By Agencies |
FRANKFURT: German pharmaceutical and chemicals giant Bayer said on Thursday it would invest more than three bn euros through to 2012 in research and development to tap into the global farm products boom.
Bayer's CropScience division said in a statement that it would pour 3.4 bn euros (4.9 bn dollars) into innovative crop protection products and new solutions in seeds and plant biotechnology over the next four years.
The company said it is also planning to bring 10 new active ingredients in crop protection to market with a peak sales potential of more than one bn euros.
"In view of the persistently high demand for agricultural raw materials, the limited amount of arable land available, and impending climate change, the agricultural industry is facing some major challenges," Bayer CropScience chairman Friedrich Berschauer said.
Bayer said in the statement that the farm product boom, notably in South America, would lead it to reach its goal of two billion euros in sales of active ingredients by 2009, two years earlier than forecast.
ADVERTISEMENT
In the first half of 2008 alone, CropScience saw turnover grow 19 per cent to 3.78 bn euros, showing it had more than compensated for negative currency exchange effects with stronger sales and price hikes. The world's biggest chemical group, Germany's BASF, has also banked heavily on agricultural products, particularly in emerging markets.
The German fertiliser group K+S learned Wednesday it would join the ranks of the DAX 30 index of blue-chip stocks on the back of its growing business as prices for commodities and food rise globally.
Download
The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.
The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.
Download
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
ADVERTISEMENT
