Bayer MaterialScience to restructure

Bayer MaterialScience is to undergo restructuring in a move designed to improve ongoing business through a revamp of organisational structure.

The pharmaceuticals firm will have a new organisational structure as of March 1st 2007, with management level changes designed to streamline operations and facilitate better strategic development.

Under the new structure, an executive committee will be established, consisting of the four current members of the board and business unit heads. It is thought that this structure will lead to significant strategic benefits, giving business unit heads greater responsibility while establishing key roles for various individuals.

“This move will sharpen the business focus of the management body and, at the same time, create a leaner hierarchy with shorter decision-making channels,” explained Werner Wenning, chairman of the board of management of Bayer AG.

Patrick Thomas, Bayer MaterialScience chief executive stresses that focussing on effective and efficient production is central to the business’ success, highlighting this fact as a key motivation behind the structural changes.

“Production is the backbone of our enterprise,” he said. “That is why we have decided to bundle responsibility for overarching production-relevant functions.”

Earlier this month, Bayer MaterialScience announced that it is looking to increase the production capacity of its toluene diisocyanate plant in Shanghai up from 160,000 tonnes to 300,000 tonnes.