BASF to Invest Heavily In Plant Biotechnology 

Handelsblatt 2oct00

BASF AG plans to invest 700 million euros ($615.6 million) in plant biotechnology over the next ten years in a bid to become a leading player in this area, the company said Friday.

The remarks by Hans Kast, president of BASF Plant Science GmbH, coincided with the opening by BASF subsidiary Metanomics of a new research center in the Charlottenburg Biotechnology Park in Berlin.

The laboratory, whose technical infrastructure alone cost more than 23 million marks ($10.3 million or 11.8 million euros), will specialize in the field of functional genome research in plants.

Metanomics, which BASF founded in 1998 with the aid of scientists from the Max-Planck Institute of Molecular Plant Physiology, is part of a network of laboratories, biotechnology investments and alliances BASF has set up over the past two years. Together, these activities form BASF Plant Science GmbH.

Compared with competitors such as Pharmacia Corp.'s Monsanto, Novartis AG and Aventis, BASF got off to a relatively late start in the area of plant biotechnology. Nevertheless, BPS chief Kast said he was confident the use of modern technologies would allow the group to establish a strong position in plant genetics.

"In ten years, we aim to be among the leading companies in plant biotechnology," he said. In addition, the group plans to strengthen further its seed business. As part of this effort, BASF last year took a 40% stake in Swedish seed manufacturer Svaloef Weibull.

BASF earlier this year strengthened its plant-protection business through the acquisition of the cyanamide division of American Home Products. This division has developed several types of genetically modified maize and rape plants, which it is currently introducing on the U.S. market. However, these products are unlikely to be licensed for sale on European markets for some time.

BASF, like other players in this field, hopes public opinion will change and the European Union will relax its restrictive policies on genetically modified foods. Kast on Friday pointed out that the technology of genetic modification had already become established in the U.S.

Research was still at an early stage. Though BASF had already applied for hundreds of patents in this area, the first products would not be ready to be launched on the markets until the middle of the next decade at the earliest, he said.