Bayer MaterialScience AG is establishing its own local distribution network with import and export rights in China. The aim is to supply customers in China with products manufactured at the new production facilities at the Bayer Integrated Site in Caojing near Shanghai and in production centres in other regions.
At the core of this network is Bayer MaterialScience Trading (Shanghai) Co. Ltd., a wholly owned subsidiary of Bayer (China) Ltd., which will be operational from August 1, 2005. In the initial phase, four branch offices will be set up in Qingdao, Chengdu, Guangzhou and Beijing. About 100 employees will be transferred from the company’s existing local businesses to support the trading operations.
Within the next five years, the trading company will handle an expected annual sales volume of around $1 billion. It will offer greater direct access to local customers, as it is capable of invoicing in local RMB currency terms. Previously, local customers without import rights were required to channel their business through dealers.
The move provides the third fundamental pillar of Bayer MaterialScience's strategy to strengthen its position in China, adding local distribution to local production capabilities and a local technical service. At Caojing, the company is investing in world-scale production facilities for polycarbonate, polyurethane and coatings raw materials. All facilities planned or under construction should be operational by 2009.
