New Bayer AG structure operational

Aiming for sustainable increase in corporate value / better placed for strategic options

02-Jul-2002

Leverkusen - Effective July 1, 2002, the Bayer Group is operating within its new organizational structure. In the future, the four operating subgroups and three service companies - under the umbrella of a management holding company - will focus more strongly on their core competencies, making better use of growth opportunities and aiming for a sustainable improvement in performance. "In just seven months we have entirely realigned the Group and adapted it to both current and future market challenges," commented Bayer AG Management Board Chairman Werner Wenning. "In this way we have accomplished an important part of Bayer's restructuring."

For the moment the new structure only applies internally, with the future legal entities still being run as organizational units of Bayer AG. In October 2002 Bayer CropScience AG will also become legally independent - with retroactive economic effect from January 1, 2002. The carve-out of the other companies is planned to take place in July 2003 with retroactive economic effect from January 1, 2003, after approval has been received from the 2003 Annual Stockholder's Meeting.

This biggest reorganization in Bayer's history is designed to enhance the Group's international competitiveness. According to Wenning: "With this reorganization we are separating strategic management from business operations to ensure that the future subgroups Bayer Chemicals, Bayer CropScience, Bayer HealthCare and Bayer Polymers can act flexibly in their markets, make rapid, focused decisions and capitalize more quickly on innovations." They are also considerably better positioned for strategic options, including cooperations, joint ventures or strategic alliances, as well as acquisitions and divestments. "We expect the new structure to bring a sustainable increase in corporate value - in the interests of shareholders, customers and employees alike," said Bayer's CEO.

In future the Bayer Group will be run by the Management Board of the new holding company which, apart from Wenning as Chairman, includes Klaus Kühn (responsible for Finance), Dr. Udo Oels (Technology and Environment), Dr. Richard Pott (Strategy and Human Resources, labor director) and Werner Spinner (Business Excellence, Regions and Services). The holding company will deal with portfolio issues, strategy, budgets, finance and appointments to the principal managerial positions.

Chairman of the Board of Management of the future Bayer HealthCare AG, which comprises the Pharmaceuticals, Consumer Care, Diagnostics, Biological Products and Animal Health business groups, is Dr. Frank Morich. The Management Board Chairman of Bayer CropScience AG, which combines Bayer's crop protection business with the recently acquired Aventis CropScience, is Dr. Jochen Wulff. Dr. Ulrich Koemm has been appointed Chairman of the Board of Management of Bayer Chemicals AG, which comprises the current Basic and Fine Chemicals and Specialty Products business groups along with subsidiaries H.C. Starck and Wolff Walsrode. Dr. Hagen Noerenberg becomes Chairman of the Board of Management for Bayer Polymers AG, which unites the activities of the current Plastics, Rubber, Polyurethanes, and Coatings and Colorants business groups.

The managing director of the new Bayer Standort Dienste GmbH & Co. OHG, which encompasses all services at the Bayer sites in Germany, is Dr. Jürgen Hinz. Prof. Dr. Gottfried Plumpe has taken over the helm of Business Services GmbH, which is in charge of all business and administrative services. Bayer Technology Services, which will assume responsibility for all technological services in the new Bayer Group, is to be headed by Dr. Wolfram Wagner.

https://www.chemeurope.com/en/news/11730/new-bayer-ag-structure-operational.html