Bayer Cutting 220 Jobs at Institute for stop production on Aldicarb

Bayer announced Tuesday that it will be closing facilities dedicated to a certain chemical at its Institute plant.

Bayer CropScience announced Jan. 11 its plans to begin curtailing production of several pesticide products at its Institute plant resulting in the loss of 220 jobs over the next two years.
In cooperation with the Environmental Protection Agency, the company had announced plans in August 2010 to stop producing Aldicarb, the active ingredient in its Temik brand pesticide. Used on crops such as potatoes and citrus fruits, the chemical no longer meets the EPA’s food safety standards.

Also affected by the decision is the phase out of carbaryl, the active ingredient in Sevin brand insecticide, as well as certain intermediate materials associated with their production. The respective operations, including methyl isocyanate (MIC), will be phased out over the next 18 months to allow for an orderly market exit and to honor existing commitments to growers.

“Temik has been the cornerstone of our carbamate manufacturing strategy,” said Chris Evans, senior vice president of industrial operations. “The decisions to exit Temik and to discontinue our methomyl and carbofuran production made it impossible to maintain competitive operations at parts of our Institute site.” In addition to the cutbacks at the Kanawha County site, Bayer indicated it will close its formulation unit at Woodbine, Ga. The reduction at Institute represents approximately 40 percent of the workforce. Eighty percent of the cutbacks will take place during 2012 and the remainder in 2013.

Following a complete overhaul and technical modification of the MIC plant at Institute, Bayer officials said they intend to complete its planned startup of the unit over the next few weeks to ensure continued safe operations during the remaining production period. The unit will then be shut down and decommissioned in mid-2012.

Bayer CropScience plans to continue supplying its customers with Temik until the end of 2014, after which sales of the compound will cease. The company said it intends to continue marketing Sevin based on active ingredient supplies from alternate sources.

The closure of part of the Institute plant and the closure of Woodbine will result in one-time costs of approximately $275 million.

“This decision was not an easy one,” said Evans. “For many years, the Institute and Woodbine sites have provided good jobs for our communities and important products for agriculture. Although this change is necessary, we recognize the impact it will have on our employees and will act responsibly to support them during this transition.”

The Institute site consists of 460 acres along the Kanawha River. Bayer CropScience officials said they will continue recruiting tenants to occupy approximately 200 acres available.