Bayer opens state-of-the-art seed processing facility in Ukraine
200 million U.S. dollar investment in Pochuiky, Zhytomyr region / Sufficient supply of conventional, high-quality DEKALB® corn seed for Ukranian farmers / Processing for domestic and European markets.
BAYER today opened a state-of-the-art seed processing facility in Pochuiky, Zhytomyr region. The new facility is the largest of its kind in Ukraine, and one of the largest in Europe. Investment in the new plant amounts to 200 million U.S. dollars, and is part of a long-term investment into expanding DEKALB® corn seed processing in Ukraine.
The facility will feature two dryers and a logistics center, and will begin operation to support customer demand for high-quality corn seed in Ukraine in time for the 2019 planting season. It will process around 750,000 units of seed annually to supply 2,500 Ukrainian farmers with DEKALB® corn seed developed using traditional breeding techniques, with further expansion planned to support international markets.
Official opening of Bayer’s new seed processing facility. From left to right: Dr. Dirk Backhaus, Member of the Executive Leadership Team of the Crop Science Division and responsible for Product Supply, Victor Sheremeta, Deputy Minister of Agricultural Policy and Food of Ukraine, Igor Gundych, Head of Zhytomyr Regional State Administration of Ukraine, and Sergiy Krolevets, CEO of Eridon Company, construction contractor company
“This investment demonstrates Bayer’s strong commitment to Ukraine. With more than 25 years of successful history in Ukraine, we have always been a key player in developing the country’s agricultural sector,” commented Dr. Dirk Backhaus, the member of the Executive Leadership Team of the Crop Science Division responsible for Product Supply. “Bayer will continue working with farmers in Ukraine and is also planning to export its high-quality corn seed to EU states.”
The new Bayer seed processing facility will employ around 85 permanent and 220 seasonal employees to support the processing, storage and timely distribution of corn seed.
“This facility is conveniently situated in one of Ukraine’s most productive agricultural regions, where many Ukrainian farmers plant their crops. Thanks to the team engagement, state-of-the-art technology and optimized logistics, we will be able to meet the ever-growing demand of Ukrainian farmers for superior-quality corn seed,” noted Remi Deï-Tos, Bayer Site Lead Ukraine.
DEKALB® has been helping farmers ensure a high-performance future with industry-leading corn seed products for more than 100 years. DEKALB® gives farmers superior performance with exclusive genetics, integrated solutions and agronomic expertise to help maximize yield potential. For additional information, farmers can contact their local DEKALB® Asgrow®.
Cautionary Statements Regarding Forward-Looking Information
Certain statements contained in this communication may constitute “forward-looking statements.” Actual results could differ materially from those projected or forecast in the forward-looking statements. The factors that could cause actual results to differ materially include the following: the risk that the parties may be unable to achieve expected synergies and operating efficiencies in the merger within the expected timeframes (or at all) and to successfully integrate the operations of Monsanto Company (“Monsanto”) into those of Bayer Aktiengesellschaft (“Bayer”); such integration may be more difficult, time-consuming or costly than expected; revenues following the transaction may be lower than expected; operating costs, customer loss and business disruption (including difficulties in maintaining relationships with employees, customers, clients or suppliers) may be greater or more significant than expected following the transaction; the retention of certain key employees at Monsanto; the parties’ ability to meet expectations regarding the accounting and tax treatments of the merger; the impact of refinancing the loans taken out for the transaction; the impact of indebtedness incurred by Bayer in connection with the transaction and the potential impact on Bayer’s rating of indebtedness; the effects of the business combination of Bayer and Monsanto, including the combined company’s future financial condition, operating results, strategy and plans; other factors detailed in Monsanto’s Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission (the “SEC”) for the fiscal year ended August 31, 2017, and Monsanto’s other filings with the SEC and on Monsanto; and other factors discussed in Bayer’s public reports. Bayer assumes no obligation to update the information in this communication, except as otherwise required by law. Readers are cautioned not to place undue reliance on these forward-looking statements that speak only as of the date hereof.
