This excerpt taken from the SYT 20-F filed Mar 16, 2005.
Realize the Savings from the Operational Efficiency Program
On February 11, 2004, Syngenta announced an Operational Efficiency cost saving program. This new program is expected to deliver annual cost savings of US$300 million by 2008, measured by comparing total costs against 2003 reported costs, excluding variances arising due to exchange rate movements, changes in sales volumes or mix and specifically identified expenditures such as growth projects. This program will include the relocation of assets to lower cost regions, a further reduction of the asset base, an increase in the globalization of purchasing and the outsourcing of some administrative processes. The total cash cost of the program will be around US$500 million over five years and non-cash charges, principally writing-down the value of fixed assets, are expected to be around US$350 million. Specific announcements on the closure of two manufacturing sites, one in Switzerland and one in the United States, and the rationalization of two further manufacturing
sites were made on the same date and a further closure announcement was made later in 2004. Production from these closing sites will be relocated and costs related to these site announcements had been included in the above totals. See Item 5 Operating and Financial Review and ProspectsOverviewOperational Efficiency Program for more information regarding this program.