In German-only announcement, Bayer invests $1.5B into native country manufacturing
Bayer has signed a deal to pump $1.53 billion into expanding the manufacturing operations in Bergkamen, Berlin, Leverkusen, Weimar and Wuppertal.
The deal will help establish hubs for innovative research methods and digital technology, as well as the modernization of facilities and more intensive collaboration with universities and startups.
“We are thus giving the employees in Germany much-needed orientation and creating the basis for competitive, sustainable and growing employment in Germany,” Oliver Zühlke, the chairman of the Bayer Geneal Works Council, said in a translated statement. “At the same time, we want to strengthen Bayer’s global competitiveness and innovative strength from Germany and support the group in achieving its growth targets.”
A life hub in Monheim at the Crop Science Division’s headquarters will connect it more closely with the local environment.
By 2026, the company will boost digitization and innovate on its manufacturing operations at sites in Dormagen, Frankfurt and Knapsack with $316 million. Additionally, sites will get upgrades in artificial intelligence, data science and multi-channel marketing in the coming years.
Many of the R&D hires will be right in Germany, Bayer said, and those are on track to happen by 2025.
In 2021, Bayer spent $300 million to build a contraceptives manufacturing plant in Turku, Finland and another $160 million for contraceptives manufacturing in Costa Rica. Bayer has previously dubbed Turku the “world’s contraceptive capital,” as it makes IUDs and birth control implants. Meanwhile, Bayer has been in Costa Rica for more than 40 years, and the country became its regional hub in 2008.
Just days ago, Bayer put up 95 acres of its Creve Coeur, MO campus up for sale, as it told the St. Louis Business Journal that it envisions a future with less physical office space. In 2020, WuXi STA prepared to take over Bayer facilities in Leverkusen and Wuppertal to start and finish the year.
Bayer will also invest $131 million over the next four years to boost digitization, smart factory tech and employee training at its consumer health division, which is located in Germany as well.