New setup will be implemented gradually by the end of 2028.
Bayer is reorganising its Crop Science division’s activities in the areas of crop protection production and research and development in Germany. This step is necessary to ensure the division’s global competitiveness. Manufacturers of generic crop protection products, particularly from Asia, have built significant overcapacity over recent years and are pushing onto the market with persistently low prices, some of which are below the manufacturing costs of crop protection products in Europe. This is exacerbated by increasing regulatory restrictions and national export barriers. In the future, the focus will therefore be even more on strategic, innovative technologies and products that offer growers differentiated value not matched by generics. As a result of the changes, Bayer will discontinue its activities in Frankfurt am Main after the end of 2028. The company aims to sell parts of the activities, while others will be relocated. Production at the Dormagen site will be streamlined to ensure its competitiveness for the future.
“We are committed to Germany. However, to live up to this commitment in times of considerable challenges, we need to adjust,” said Frank Terhorst, Head of Strategy and Sustainability of the Crop Science division. “This results in difficult decisions that are painful for many colleagues. However, these steps are urgently needed to counteract the significant overcapacity and a hopeless price competition with generics manufacturers from Asia, so that we can maintain production facilities in Germany and continue to produce products competitively for our customers.”
At its Frankfurt site, Bayer runs production operations for herbicide active ingredients and formulations, as well as research and development activities for herbicides, employing around 500 people there. However, not all jobs will be lost: Divestment opportunities are being explored for some production activities, while other production activities will be moved to the sites in Dormagen and Knapsack, or integrated into the European formulation network. Research and development activities will be optimized from a cost perspective, and all essential activities will be relocated to the main site in Monheim am Rhein where research and development for insecticides and, to some extent, for fungicides is already located. About two years ago, Bayer also started construction of a state-of-the-art facility for the development of crop protection products in Monheim. These measures will strengthen Monheim as a focused centre for research and development of crop protection products. Germany will thus remain Bayer’s most important location for research and development of crop protection products worldwide.
“We want to find viable solutions for our colleagues together with employee representatives. This is at the top of our agenda, and we are aware of our responsibility. Our colleagues are highly qualified and do a great job in facilities that are state-of-the-art. We therefore hope that parts of the production activities can be continued with a new owner,” said Frank Terhorst.
Reorganization to secure the future at the Dormagen site
The Dormagen site will remain Bayer’s production facility with the largest portfolio of active ingredients and crop protection products and will be streamlined to ensure its competitiveness for the future. Capacities will be focused on innovative and strategic technologies and products that differentiate Bayer from competitors. Production of various generic active ingredients and their associated formulations, which are available at significantly lower prices on the global market, will be discontinued. These changes will be implemented gradually by the end of 2028. Based on current planning they will impact approximately 200 positions in active ingredient production and formulation, of the nearly 1,200 employees at the site.
“Through the restructuring measures, we are positioning the Dormagen site to be able to continue to play a leading role in Bayer’s global production network. We are also working with employee representatives on socially responsible solutions for the affected colleagues in Dormagen,” said Frank Terhorst.
Decisions are based on the five-year framework of the Crop Science Division
In March, Bayer presented a comprehensive “five-year framework” to counter the challenges facing the Crop Science division and to ensure global competitiveness. The reorganization at the German sites is a result of the “five-year framework.” Bayer is focusing on its strengths as an innovation company to provide new technologies that improve food security worldwide. Innovative active ingredients for crop protection products are critical in doing so with several blockbusters to be launched from the Crop Science research and development pipeline over the next ten years.
