Bayer HealthCare to Invest in Manufacturing Operations as Next Step in Recent Animal Health Business Acquisition
Bayer HealthCare LLC has announced that the company will be improving efficiency and investing in its manufacturing operations in Missouri. The company will combine and transfer operations from three locations in the St. Joseph area to one beginning this year. Additionally, Bayer will be transferring its regulatory and development activity to its U.S. headquarters based in Shawnee, Kan. by early 2015. The company will invest an estimated $10 million dollars between its Kansas and Missouri sites located in the greater Kansas City region, which is part of the Animal Health Corridor.
"One year post-acquisition, this is the next logical step in the integration process," said Steve Meeker, vice president, Product Supply, U.S. Animal Health. "The employees of the St. Joseph Product Supply Manufacturing site have done an excellent job in delivering quality products on a timely basis for support of our commercial requirements. We have completed the analysis of the business and identified overlaps in technology and operating processes with the Shawnee Supply Center that, once optimized, will provide Bayer with a sustainable, cost-competitive, long-term manufacturing operation. The St. Joseph Supply Center will continue to be an important part of Bayer's supply strategy and, as such, we have decided to invest an estimated $6.5 million in upgrades to our St. Joseph campus." Bayer acquired the St. Joseph facilities in January 2013 following its acquisition of the U.S.-based animal health business of Teva Pharmaceutical Industries that strengthened the company's food animal business with a range of anti-infectives, anti-inflammatories and reproductive hormones. It also enabled Bayer to build its companion animal veterinary business by expanding its portfolio with dermatological, pet wellness and nutraceutical products.
"Bayer's U.S. Animal Health business is vital to the overall attainment of the company's global animal health success," said John Koelink, head of Product Supply, Animal Health. "This strategic decision to optimize operations will ensure the long-term vitality of the business and our U.S. operations, including both the St. Joseph and Shawnee facilities." Bayer will also invest an estimated $3.5 million in its Shawnee site to consolidate and build R&D capabilities. The overall manufacturing operations optimization is expected to be completed early next year.
These changes may result in some personnel changes over the next one to two years; however, it is too soon to determine the individual impact, according to Meeker.