Bayer reorganizes agricultural operations in Germany to face Asian competition

Bayer will restructure its Crop Science division in Germany. The multinational company announced on Monday (12/5) that it will close its operations in Frankfurt by the end of 2028. The move follows the consolidation of production in Dormagen and the centralization of research in Monheim. The reorganization aims to curb the impacts of competition from generic agricultural products from Asia, whose prices are putting pressure on the European market.

The decision reflects the need to maintain global competitiveness. According to the German company, Asian manufacturers have flooded the market with active ingredients and pesticide formulations at prices below European costs. At the same time, stricter environmental regulations and export barriers are increasing operational challenges within the continent.

The company plans to sell part of its Frankfurt operations, which currently employ around 500 people. The site produces active ingredients and herbicide formulations and also hosts research in the field. Some of these activities will be transferred to Dormagen and Knapsack. Others could be integrated into the company's European formulation network.

Monheim will become Bayer’s new research and development center for crop protection. It already houses initiatives in insecticides and fungicides. In 2023, the company will begin construction there on a state-of-the-art facility for new pesticides. The city will thus become the hub for the company’s agricultural innovations. Bayer ensures that Germany will continue to be the group’s main research hub for agrochemicals.

Dormagen, which employs almost 1.200 people, will undergo restructuring. The plant will continue to produce pesticides and active ingredients, but the company will stop manufacturing generic compounds, which have lost economic viability. The change will affect approximately 200 jobs. The cuts will be gradual until 2028. The goal is to strengthen the plant with innovative technologies and products aimed at market differentiation.

Frank Terhorst, head of strategy and sustainability for the agricultural division, acknowledged that the decisions are difficult. He said adjustments are needed to maintain operations in the country and serve farmers competitively. Terhorst said Bayer will seek viable solutions with workers' representatives. The hope is that some of the activities in Frankfurt will continue under new ownership.