Bayer To Make Six-Year Investment In US Operations

German chemical and pharmaceutical company Bayer is investing around $9billion over a six-year period from 1995 to 2000 in strengthening its operations in the USA. The firm said that $4.6 billion of capital investments have been made or are underway, and another $4.1 billion will fund R&D. Of this sum, 80% will be dedicated to health care and agriculture.

The importance of the US business to the group is illustrated by this investment. In 1996, Bayer Corp, the group's US subsidiary, achieved sales of $9 billion, accounting for a quarter of total sales worldwide. "Our aggressive expansion strategy will ensure that Bayer Corp will not only be able to retain its position in the US marketplace, but expand it even further," commented Walter Wenninger, group board member responsible for North America.

A sum of $2 billion has been earmarked for strategic acquisitions, with Bayer having already spent over $2 billion on acquisitions in the USA over the last two and a half years. The firm has indicated that it expects US turnover, as a percentage of worldwide sales, to reach 30% in the next few years, and that there will be 1,700 new jobs created.