Syngenta has unveiled a new strategy that includes plans to merge its two biggest divisions: crop protection and seeds. The announcement comes after the company reported a 6% rise in its 2010 revenues.
In a video interview, Syngenta CEO Mike Mack said the first stage of the integration would be complete by 2012. “This is the culmination of plans that have been under way for three years,” he said. “Integration doesn’t just mean people, it also means offers and I’m looking forward to being able to take two really strong businesses to a higher level of performance.”
In a Feb. 9 Syngenta news release, Mack said the merger of the seed and crop protection divisions will build “on the success of integration already introduced in countries such as Brazil and Italy.”
The release also said that commercial integration will result in cost savings of around $150 million by 2015. Additional savings from procurement and supply chain efficiency are expected to total around $500 million, giving total annualized cost savings of around $650 million in 2015.