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IN TOP GEAR:
VIETNAM’S MARKET ECONOMY DRIVE
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BUSINESS DEVELOPMENT WITH RESPONSIBILITY

Bayer Thai Company Limited Established in 1962, Bayer Thai Company Limited has two production sites in the Kingdom. The bigger plant, located in Map Ta Phut Industrial Estate, Rayong Province, produces polycarbonates on a worldwide scale, exporting mostly into the Asia-Pacific region. The other plant in Bangpoo Industrial Estate produces environmental science, crop protection and animal health products. It also operates the new BaySystems Asean to provide ready-to-use polyurethane systems for the manufacture of heat insulating foams in construction, refrigeration and hot water sectors, as well as special applications in the automotive, footwear and sports equipment manufacturers. The new integrated site serves customers in Southeast Asian countries plus Australia and New Zealand. Permanently trained marketing, sales and service teams enable Bayer Thai to offer innovative tailor-made solutions to its customers.

AseanAffairs’ interview with
Dominikus von Pescatore,
Senior Bayer Representative of Bayer Thai Co., Ltd.


Q: How would you describe Bayer AG’s business in Thailand?

A: Thailand is the single largest market in Bayer’s Country Group North Asean. Bayer has had a legal entity in Thailand since 1962. Our business could be expanded continuously, exceeding the level of 180 Mio. Euro (Million Euro) (about $259 million) for domestic sales in Thailand and reaching about 560 Mio. Euro (Million Euro) including exports (2008).

Contrary to the global situation, where BHC represents about half of Bayer’s sales, in Thailand BMS holds the highest share in ship to-sales due to our solid position as partner of significant industries, like the chemical, sport and leisure, furniture, automotive, electro/electronics and others. Also BCS is among the local leaders offering a big variety of protective products for rice, vegetables and fruits. With BHC we are currently positioned middle field having good growth perspectives, especially in pharmaceuticals due to our strong innovative pipeline focusing on oncology & hematology, cardiovascular, diagnostic imaging and women’s health.

Our activities in Thailand are realised through five sites, being two of them production sites: The world-scale plant of Polycarbonates in Map Ta Phut and the formulation and repacking-plant in Bangpoo (products for crop protection, environmental science, animal health as well as a polyurethane system-house).

In Suphan Buri we have a rice development center. In the area of Bangkok are our offices of Bayer Schering Pharma (Chaengwattana) and our central office in North

Sathon Road (Bangrak). In total we currently have 1260 employees at Bayer Thai.

Priority of our strategy is sustainability expressed in the wording “Bayer – Science For A Better Life”. This means a commitment of responsibly developing our business under ethical principles and contributing to the social and economic development of the country. We support this business approach with selected social programs, focusing on education in environment, science and health.

Q: Bayer Thailand has been among the most environmentally responsible companies but its plant in Map Ta Phut is among those ordered to suspend operations. What’s your response to the injunction order?

A: For Bayer, as good corporate citizen, it is important to always respect the law. We appealed the injunction order as we had fulfilled all existing rules for our expansions and had got the EIA (Environmental Impact Assessment).

Q: What is the impact of the injunction order on your company and its expansion plans and growth projections?
 

A: If solved in Q1 the impact will be minor. Beyond that we would need to increase imports from our other sites to service our customers. This means higher costs and risk of loosing some business due to tight supplies.

Q: What’s your next move?

A: We are of the opinion that based on the existing law our expansions should not be stopped. We are preparing a detailed technical dossier to explain this. Furthermore, we are studying drafts of the missing guidelines, like the HIA (Health Impact Assessment), public hearing and independent environmental panel in order to understand future requirements and fulfill them as soon as they are clear and being implemented.

Q: You also have a plant in Bangpoo Industrial Estate, which produces environmental science, crop protection and animal health products. How are those operations going?

 

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