Bayer CropScience has revealed that it sees a positive long-term market development in North America, and is committing what it has described as 'significant resources' to spur further growth in the market.
'We see future growth driven by increasing and sustained demand from customers for improved seeds and innovative crop protection products,' said Bayer CropScience CEO Liam Condon at the official inauguration of the company’s new integrated R&D site in West Sacramento, California.
'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,' Condon explained, adding that the company aims to grow faster than the US market.
The company is planning on investing close to US$1bn (€700m) in Capital Expenditures (CAPEX) in the US between 2013 and 2016, mainly to ramp up research and development and to expand a world-class product supply of its top crop protection brands.
These expenditures are part of a global investment programme Bayer CropScience started last year, with a total CAPEX for the period 2013 to 2016 of €2.4bn (approximately US$3.3bn).
The organisation is seeking to better leverage 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,' said Dr Adrian Percy, global head of research and development at Bayer CropScience. '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.'
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. The approximately US$80m facility is situated on 10 acres of land and features a 100,000-square-foot building and a 35,000-square-foot pilot plant to support research and development of biological crop protection products, as well as a 30,000-square-foot Vegetable Seeds research building. The facility will also include a 2,000-square-foot greenhouse and five acres of nearby land for future greenhouse space.
In addition to building its R&D network in the United States, Bayer CropScience is also investing significantly in the production capacities of its crop protection products while also investing constantly in its seeds business.
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