Syngenta merges crop protection and seed businesses
Syngenta sales totaled $11.6 billion last year, with emerging markets accounting for almost half of sales. In order to effectively meet the needs of agriculture in coming years, Syngenta will merge its crop protection and seed divisions to leverage the strengths of both to improve profitability, according to the company.
The merger will be complete by 2012 and they will be fully integrated on a global crop basis. The move is expected to save Syngenta $650 million in cost and procurement savings and supply chain efficiencies by 2015.
A combined platform will allow for new pipelines of products, according to Syngenta. Research and development will work together on seed and crop protection products to develop genetic and chemical solutions.
The combined crop protection and seed businesses will be divided into 19 territories with specific crop focuses, and those territories will be grouped into four geographic regions. John Atkin, the chief operating office of Syngenta Crop Protection, will be responsible for Europe, Africa, the Middle East and Latin America. He will also oversee cereals, soybeans, sugar cane and specialty crops. Davor Pisk, chief operating officer of Syngenta Seeds, will be responsible for North America and Asia Pacific, as well as the crops corn, diverse field crops, rice and vegetables.
Syngenta hopes to gain an additional one-half percent market share in five years and improve cash flow and margins significantly