Global overcapacity and slack demand are leading Bayer MaterialScience (BMS) to consolidate its polycarbonate (PC) sheet business. In the latest move, the company has announced plans to close its sheet production site in Darmstadt, Germany, and supply German customers from its facilities in Nera Montoro, Italy, and Tielt, Belgium.

BMS said the decision to close the German site with the loss of 90 jobs followed a "thorough review" of its polycarbonate business model, which includes the sheet business. Consolidation of sheet activities in Europe was deemed necessary to ensure the long-term viability of the business as a whole and to remain competitive, said Markus Steilemann, head of the Polycarbonates business unit.

The Bayer sub-group currently produces PC sheet at ten locations, and not only Europe is seeing cutbacks. Steilemann noted that Asia-Pacific has already undergone consolidation, with the sheet business in Australia and New Zealand on the sale block, as well as the Laserlite brand name. Chinese activities also have been realigned, with sheet production consolidated at Guangzhou and the Beijing site closed.

Overall, the polycarbonate business has changed dramatically in recent years, with new competitors and overcapacities entering the market simultaneously with a decline in demand from customer industries. Bayer, the world's largest polycarbonate producer, is currently adding 200,000 t/y of new polymerisation capacity at Shanghai, China.

Despite the oversupplied market, Steilemann said he is optimistic about the future of the overall business. "The demand for the high-performance plastic polycarbonate continues to grow year-to-year and worldwide at rates that will soon wipe out the current overcapacities. By adjusting our alignment, we are strengthening our leading market position."