Bayer ‘facing no financial difficulties’ despite credit crunch

Bayer has said its plastics unit, Bayer Material Science, is not facing financial problems despite many of its customers experiencing difficulties.

Chief executive of the unit Patrick Thomas said 80 per cent of its customers are small and medium sized customers who must finance working capital.

"What worries me is access to capital for our customer base," he was quoted as saying by Reuters.

The effect of limited credit access has been seen in destocking, Mr Thomas said, but made assurances that Bayer is doing well.

He commented: "We are totally comfortable without financing.

"If we had to get money from banks, it wouldn’t be hard for us."

Mr Thomas went on to say Bayer Material Science’s Chinese market has seen sales growth of double-digit rates over the past decade, the equivalent of twice the country’s annual economic growth rate.

Earlier this month, Bayer received a UK licence for its new drug, Xarelto (rivaroxaban).