Bayer to Close Frankfurt Plant, Impacting 500 Jobs in Agrochemical Sector

Bayer AG has announced significant restructuring within its agrochemical division, culminating in the closure of its Frankfurt facility. This decision, which affects approximately 500 employees, is attributed to increasing cost pressures, particularly from Asian competitors in the agricultural chemicals market.

The company, known for its acquisition of Monsanto in 2018, has struggled to achieve the anticipated benefits from this merger. The ongoing global pricing pressure has prompted Bayer to reevaluate its operations and focus on innovative technologies and strategic products to remain competitive against generic manufacturers.

As part of this restructuring, Bayer plans to consolidate its research and development operations in Monheim am Rhein. Additionally, the production site in Dormagen, located near Leverkusen, will undergo a reorganization, leading to a reduction of around 200 positions out of the approximately 1,200 currently employed there.

The Frankfurt site, situated in the Höchst industrial park, has been a hub for both the production of herbicide active ingredients and research for plant protection products. Bayer has indicated that while the site will be closed, not all jobs will be lost. The company aims to find a buyer for certain production sectors, while other functions will be transitioned to the Dormagen and Knapsack locations in Hürth, near Cologne.

In explaining the rationale behind these cutbacks, Bayer cited significant cost pressures and a rise in regulatory challenges. The company highlighted that many Asian generics producers have built excess capacities in recent years and are now entering the market with prices that often fall below the manufacturing costs in Europe.

This move has drawn criticism from labor representatives, with the chemical union IG BCE and Bayer's works council expressing strong opposition to the closure. They described the plans as a pivotal moment in Bayer's 162-year history, contrasting sharply with the company's stated commitment to maintaining its operations in Germany. The union has called for the exploration of alternatives to the planned closure.

Union representatives emphasized that this would mark the first time a German location has been entirely shut down by the company. They urged Bayer to reconsider its decision and investigate other possible options to avoid job losses.

Under the leadership of CEO Bill Anderson, Bayer has already streamlined its administration and reduced management positions in recent years. As of the end of 2024, the company employed nearly 93,000 people, down from around 100,000 the previous year. Bayer has been facing ongoing challenges in its agricultural sector, particularly due to declining prices for glyphosate, a widely used herbicide.