Leverkusen, Germany - Bayer AG plans to invest around Euro 100 million at its sites in Brazil through to the end of 2009, the company announced in a 23 June statement.
"Brazil is our biggest market in Latin America, and we want to further expand our position in this growth region," said group ceo Werner Wenning at a press conference in Belford Roxo, near Rio de Janeiro, to mark the 50th anniversary of the founding of the site.
Bayer supplies the entire South American market with MDI (methylene diphenyl diisocyanate) from Belford Roxo, as well as producing coatings raw materials for the automotive, furniture and construction industries from the same site. In 2005 the site had an MDI capacity of 45 kilotonnes per annum (kpta).
In relation to the increased PU activities, a Bayer spokesperson told Urethanes Technology International, "We are committed to following the market growth in Latin America by investing in capacity for MDI, PET and BaySystems operations in Belford Roxo, Brazil."
The company said in the statement that Euro 40 million will be spent on modernisation and technical upgrading of the production facilities for plastics precursors and crop-protection products, as well as infrastructure projects. It was also announced that partner companies will invest Euro 55 million at the Bayer industrial park in Belford Roxo and a further Euro 60 million is to be invested at the other Bayer sites in Brazil.
The company expects 800 new jobs will be created in the Belford Roxo area.
Bayer did not disclose specific investment costs or capacity increases for specific products.