Bayer aligns organization with Life Science businesses

MOSCOW (MRC) -- Following the economic and legal separation of Covestro, Bayer is charting the course for its successful development as a Life Science company, said the company on its site.

Supervisory Board approved the reorganization proposed by the Board of Management. From January 1, 2016, the company’s business will be managed by three divisions: Pharmaceuticals, Consumer Health and Crop Science. The present structure of a strategic management holding company and operational subgroups will be replaced by an integrated organization under the umbrella of the strong Bayer brand.

In the new organization, the Board of Management of Bayer AG will also hold overall responsibility for business operations. For this reason, the Supervisory Board resolved to appoint the heads of the divisions - Dieter Weinand (Pharmaceuticals), Erica Mann (Consumer Health) and Liam Condon (Crop Science) - to the Board of Management effective January 1, 2016. On the same date, Dr. Hartmut Klusik will also join the Board of Management of Bayer AG as the new Labor Director and Board member responsible for Human Resources, Technology and Sustainability. He will succeed Michael Konig, who has requested that his contract not be extended.

As part of the reorganization, the Bayer HealthCare subgroup will be dissolved. The Radiology business will be assigned to the Pharmaceuticals Division. Consumer Health will comprise the present Consumer Care Division. The Bayer CropScience subgroup will become the Crop Science Division. As a business unit, Animal Health will report directly to Liam Condon.

The divisions are to focus on core competencies close to their businesses - research and development, production, and sales & marketing. They will be supported by integrated functions such as Human Resources and Procurement, and by global services. Within this context, Bayer’s existing Technology Services company will become the Engineering & Technology function. Bayer Business Services, the company in which information technology and business support services are bundled, will remain a separate legal entity that is to see further expansion.

This greater integration will also be reflected in Bayer’s brand architecture. In the future, the company will focus exclusively on the Bayer corporate brand and its product brands. The divisions will not have separate brand identities.

As MRC informed earlier, the plan for Bayer MaterialScience to become a separate company was announced in September 2014.

Bayer is a global enterprise with core competencies in the fields of health care, agriculture and high-tech polymer materials. As an innovation company, it sets trends in research-intensive areas. Bayer's products and services are designed to benefit people and improve their quality of life. At the same time, the Group aims to create value through innovation, growth and high earning power. Bayer is committed to the principles of sustainable development and to its social and ethical responsibilities as a corporate citizen. In fiscal 2014, the Group employed 118,900 people and had sales of EUR 42.2 billion.
MRC

MOSCOW (MRC) - Kazanorgsintez (KOS, Group TAIF), Russia's largest producer of polyethylene (PE), shut its production capacities for high-density polyethylene (HDPE) for the scheduled maintenance works, said ICIS-MRC Price Report, citing the company's customers.

According to the company's customers, the company began gradual shutdown of its HDPE production on 14, September. In particular, it was shut one of the three reactors.

The producer completely shut down HDPE production on 19, September. The turnaround will last until 10, October.

Kazanorgsintez (TAIF) is one of the largest chemical companies in Russia. The company produces more than 40% of all Russian polyethylene, and also produces polyethylene pipes. The company is Russia's largest producer of high density polyethylene (HDPE). The producer's annual production capacity of HDPE is 540,000 tonnes and 217,000 tonnes of low density polyethylene (LDPE).

MRC

MOSCOW (MRC) -- Russia's polypropylene (PP) exports exceeded 247,500 tonnes in the first eight months of the year, up 112% year on year, with key exports volumes occurred for homopolymer PP, according to MRC DataScope.

Russian producers decreased PP exports significantly in July - August because of the series of scheduled maintenance works. In the last two months of summer exports shipments were 22,600 tonnes and 22,400 tonnes respectively, while in June, export sales exceeded 34,500 tonnes of PP. Total PP exports from Russia grew to 247,500 tonnes in January - August this year on the back of increased production at Russian plants compared with 116,700 tonnes year on year.

The largest volumes of exports, and that was more than 66%, occurred for the markets of China, Turkey, Belarus, Ukraine and Belgium. The main export product was homopolymer PP. Key exporters of propylene polymers were Tobolsk-Polymer, Poliom Stavrolen, with the share of each in the total exports at 49%, 29% and 7% respectively.

Other producers also increased export PP sales significantly in the current year: Ufaorgsintez, Neftekhimiya and Nizhnekamskneftekhim.
The geography of Russian PP exports was quite wide, except the above mentioned countries it is worth noting some European countries (Poland, Serbia, Lithuania) and Uzbekistan. In the total exports more than 93% occurred for homopolymer PP.

About 6% occurred for PP block copolymers, and only 1% for PP random copolymers.


MRC

MOSCOW (MRC) -- Production of finished goods from polymers in Russia decreased over the first eight months of 2015 by 5.1% year on year. The construction sector has been accounting for the greatest fall in the output for several months, reported MRC analysts.

The August output of products from polymers accelerated and reached 5.1% year on year, whereas this figure was 3.3% over the first six months of the year. Production of polymer products was affected both the overall economy and a shortage, as well as record high prices of certain polymers amid high-cost credit financing. Only local films producers showed a positive growth in production.

According to the Federal State Statistics Service of the Russian Federation, the August production of plastic pipes, hoses and fittings rose to 50,200 tonnes from 48,900 tonnes in July. The overall output of these products from polymers totalled 295,400 tonnes over the first eight months of 2015, down by 16.7% year on year.

The last month's output of non-combined and non-reinforced films increased to 84,400 tonnes, whereas the July figure was 82,700 tonnes. The overall production of these products totalled 733,500 tonnes over the stated period, up by 4,6% year on year.

The August production of plates and porous sheets reached 21,400 tonnes, up by only 400 tonnes from July. The overall output of plastic plates and porous sheets totalled 157,600 tonnes from January to August 2015, down by 2.1% year on year.
MRC

MOSCOW (MRC) - Production of basic chemicals in Russia for the first eight months of the year increased by 3.8%.
The largest increase in output occurred for ethylene, while the output of chemical fertilizers decreased, as per Rosstat data.

According to the Federal State Statistics Service of the Russian Federation, Russia's ethylene production in August was 208,000 tonnes, compared with 236,000 tonnes in July. The decline in production resulted from the scheduled maintenance works at the facilities of Angarsk ZP. Total production of ethylene in Russia in the first eight months of the year was 1.86 m tonnes, up 18.3% year on year.

Such a significant growth resulted from the resumption of ethylene production at Stavrolen. Production of benzene in August remained at the level of July at 92,400 tonnes. Total benzene production over the first eight months of the year was 801,500 tonnes, up 3.7% from the same period in 2014.

Russia's production of xylol in August increased to 46,500 tonnes, compared with 45,700 tonnes in July 2015. Production of xylols in January-August 2015 totalled 369,500 tonnes, up 3.7% year on year.

August production of sodium hydroxide (caustic soda) declined to 85,300 tonnes (100% of the basic substance) compared with 96,600 in July because of the turnarounds at SayanskKhimPlast and Bashkir Soda Company. Russia's production of caustic soda grew to 742,200 tonnes in the first eight months of the year, up 6.4% year on year.

August production of mineral fertilizers was 1.59 mln tonnes (in terms of 100% nutrients), up 6.3% compared with the July level. Russia's production of mineral fertilizers in the first eight months of the year was about 13,200 tonnes, down 2% than in the same time a year earlier. The largest decline occurred in the production of potash fertilizers.
MRC