RESEARCH TRIANGLE PARK, NC -- (Marketwire) -- 03/18/11 -- Bayer CropScience today announced that the company has decided not to restart the transitional production of methyl isocyanate (MIC) at its site in Institute, West Virginia. As a result, the company will move forward immediately with decommissioning of the reconfigured MIC and associated production units as well as the closure of Woodbine.
Bayer CropScience was planning to start the MIC unit and begin transitional production of the Temik® brand insecticide early this year, but uncertainty over delays has led the company to the conclusion that a restart of production can no longer be expected in time for the 2011 growing season.
The safety of the MIC plant, which was overhauled completely and technically modified during the past months, was confirmed again by a federal court-commissioned expert report on the plant's safety, which was delivered to the court this week. However, against the background of the continuing uncertainty regarding the timing of resumption of production, the company needed to make a decision.
'This was a very difficult decision, particularly as our employees did everything possible to ensure the operational safety of our newly-constructed MIC unit during the remaining production period,' said Achim Noack, member of the Board of Management of Bayer CropScience. 'Our business case was based on our ability to supply the market needs beginning in 2011, and with the recent delays, that plan is no longer economically viable.'
Following a 2010 agreement with the U.S. Environmental Protection Agency, Bayer CropScience agreed to phase-out Temik® and had timed production to end in 2012, to allow for an orderly market exit and meet immediate customer needs. This basic conclusion was based on a number of factors, with both strategic and economic considerations, and is fully in line with Bayer CropScience's global strategy to focus on delivering innovative solutions to modern agriculture and replacing older compounds in its portfolio, including WHO Class I products.
'We regret that the decision taken today to not restart production of MIC will not allow farmers access to Temik®,' said Bill Buckner, President and CEO of Bayer CropScience in the United States. 'However, we are committed to delivering the right solutions from our innovation portfolio in support of modern agriculture for our customers.'
About Bayer CropScience
Bayer is a global enterprise with core competencies in the fields of health care, nutrition and high-tech materials. Bayer CropScience, a subgroup of Bayer AG with annual sales of EUR 6.830 billion (2010), is one of the world's leading innovative crop science companies in the areas of crop protection, non-agricultural pest control, seeds and traits. The company offers an outstanding range of products and extensive service backup for modern, sustainable agriculture and for non-agricultural applications. Bayer CropScience has a global workforce of 20,700 and is represented in more than 120 countries. This and further news is available at: www.press.bayercropscience.com.
This news release may contain forward-looking statements based on current assumptions and forecasts made by Bayer Group or subgroup management. Various known and unknown risks, uncertainties and other factors could lead to material differences between the actual future results, financial situation, development or performance of the company and the estimates given here. These factors include those discussed in Bayer's public reports, which are available on the Bayer website at www.bayer.com. The company assumes no liability whatsoever to update these forward-looking statements or to conform them to future events or developments.
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