Bayer Chemicals becomes independent

As part of the restructuring of the Bayer Group, Bayer Chemicals has become the latest of the business sectors to become an independent company.

During the first half of 2003 sales fell significantly compare with the previous year, said Bruce Olson, executive vp, marketing and sales. However, much of this was attributable to portfolio restructuring and the strengthening Euro, and the company was able to hold its market share in a very difficult operating environment as well as increase its sales of pharmaceutical chemicals significantly.

'Despite these one-time, special effects, we are extremely disappointed with the profit performance of Bayer Chemicals during the first-half of 2003,' Olson said. 'I can only emphasize that these first-half results have strengthened our commitment to improve our performance through ongoing, consequent portfolio management, further reductions in operating costs, and an increased focus on generating profitable, top-line growth.'

This strategy will have three cornerstones: a focus in high-growth markets and regions; using expertise in custom development and manufacturing to convince customers to outsource activities that Bayer Chemi-cals can do more cost effectively; and maintaining a strong position in commodity businesses to help fund these other activities.

'I believe we now have, following the reorganisation of the Bayer Group, the opportunity to become a top-tier chemical company well-suited for challenges we will face in the global market of the 21st century,' Olson concluded.

To enhance its offering to the pharmaceutical sector, the company has put together a 'kilogram team' to concentrate on the supply of small quantities for development, concentrating on fast substance supply rather than process optimisation, said Dr Rudolf Hanko, head of business unit fine chemicals, Bayer Chemicals.

The last stage of a multi-step investment plan at Bayer's major facility for the development and scale up of processes under cGMP - the Central Organics Pilot Plant (ZeTO) - has recently been completed. This has resulted in a full complement of cGMP suits ranging from a 100-litre Kilolab up to a 12,000-litre production scale unit.

Chiral simulated moving bed chromatography (SMB) has become an important tool for both the development and production of chiral compounds, Hanko emphasised. The developmental pilot scale plant located in ZeTO is now to be complemented by a new production scale SMB. The new plant is being constructed for the production of a key intermediate for a launched API. It has a modular design and will be built so that it can accommodate more than one product.