Bayer to close historic German factory in 2028 amidst sweeping restructuring
Bayer has announced plans to shut down its herbicide production and development operations at the Frankfurt am Main site by the end of 2028, marking the first closure of a German factory in the company's 161-year history.
This decision is part of a broader restructuring of Bayer's Crop Science division, driven by global overcapacity, intense competition from low-cost Asian manufacturers, and increasing regulatory constraints in Europe.
The Frankfurt facility, located in Industriepark Höchst, currently employs approximately 500 people. Bayer intends to sell or relocate parts of these operations, though the exact number of job losses has not been disclosed. The company has expressed its commitment to working with employee representatives to find suitable solutions for affected workers.
Litigation, losses, layoffs
This move is part of a larger effort by Bayer to streamline operations and reduce costs amid financial challenges. In the first quarter of 2025, Bayer reported a significant drop in net income, falling over 35% to €1.3bn from €2bn a year earlier.
The decline was attributed to a near-tripling of litigation and restructuring costs to €587m and weakening sales performance. The company is also grappling with numerous US lawsuits alleging its glyphosate-based herbicide Roundup causes cancer, claims Bayer denies and is appealing.
Despite these challenges, Bayer's pharmaceuticals division showed resilience, with a 4% increase in sales and 13% earnings growth, driven by strong demand for new drugs like Nubeqa and Kerendia. However, crop science revenues declined 4% during the same period.
Chief executive officer Bill Anderson remains cautiously optimistic but noted uncertainty due to tariffs and regulatory pressures.
The closure of the Frankfurt site and other restructuring measures are part of Bayer's strategy to focus on strategic and innovative technologies in the agriculture sector, aiming to return to growth from next year.
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