Bayer AG - Stockholders' Newsletter First Quarter 2007 - Bayer CropScience targets growth in China

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Bayer CropScience targets growth in China

In China, Bayer CropScience intends to expand the production of crop protection products and its hybrid rice seed business.

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In China, Bayer CropScience intends to expand the production of crop protection products and its hybrid rice seed business.

Beijing. Bayer CropScience is aiming for growth in China. The company plans to in-crease annual sales in the People’s Republic from the current level of €65 million (2006) to over €100 million in the medium term. In pursuit of this goal, Bayer CropScience will continue to systematically step up its commitment in China, one of the world’s fastest-growing markets for crop protection products. The key points of the company’s strategy are the introduction of new, innovative active ingredients, formulations and mixtures, and the expansion of its production site for crop protection products in Hangzhou, where Bayer CropScience will in-vest a further €25 million in 2007 and 2008.

The company intends to set up two joint ventures with Chinese partners with the aim of strengthening its hybrid rice seed business and exploiting the growth potential of this increasingly important segment. “The Chinese agrochemicals market offers good opportunities for profitable growth,” said Professor Friedrich Berschauer, Chairman of the Board of Management of Bayer CropScience AG, speaking to journalists in Beijing.

Chinese agriculture has made considerable progress in recent years in response to the sharply increased demand for high-quality food products and the changing dietary habits of a steadily growing population. Bayer CropScience will continue to invest heavily in research and development to ensure that it can offer Chinese farmers products that meet local needs. The country’s goal continues to be greater self-sufficiency, particularly in food staples. Berschauer emphasized that, with this goal in mind, the government is committed to promoting the use of modern agricultural production methods. He therefore sees good prospects for Bayer CropScience in China.