Syngenta AG (SYT)

Our major production sites for active ingredients are located in Switzerland, the United States, United Kingdom, China and India. While individual active substances are normally produced at one manufacturing site, formulations are produced and packaged at several different strategically located plants, close to the principal markets in which those products are sold. We operate major formulation and packing plants in Belgium, Brazil, China, Colombia, France, India, South Korea, Switzerland, the United Kingdom and the United States.

We manage our supply chain globally and on a product-by-product basis, from raw materials through to delivery to the customer, in order to maximize both efficiency and responsiveness. We outsource the manufacture of a wide range of raw materials, from commodities through fine chemicals to dedicated intermediates and active ingredients. Sourcing decisions are based on a combination of logistical, geographical and commercial factors. We have a strategy of maintaining, when available, multiple sources of supply. Approximately one fifth of our supply chain materials purchasing spend is directly influenced by commodity price volatility, due to price dependence on gas and oil.

Significant cost savings have been realized in global manufacturing and supply following the merger of the Novartis agribusiness and the Zeneca agrochemicals business due to optimizing production capacity and closing duplicated facilities. From 48 sites at the time of the merger in 2001, Syngenta now operates on 32 sites and closure plans have been announced in 2004 for three of these sites as part of the Operational Efficiency program (see Item 5 Operating and Financial Review and ProspectsOverviewOperational Efficiency Program). In February 2005, Syngenta further announced the closure of part of the Huddersfield facility though production will continue on this site.