August 20, 1996
SAN DIEGO, Calif. -- Mycogen Corporation (Nasdaq: MYCO) has consolidated production, research and administrative facilities and staff in several states, completing the company�s assimilation of its February 1996 acquisition of United AgriSeeds from DowElanco.
�We wanted to complete this process by the end of August so we can start fiscal 1997 in September with the unified Mycogen Seeds organization in place,� said Jerry Caulder, Mycogen�s chairman and chief executive officer. �To meet our goal of moving into the black next year, we had to bring facilities and expenses into proper relationship with realistic volume and revenue forecasts.�
Carl Eibl, president and chief operating officer, said Mycogen will concentrate corn and soybean seed production in four large, efficient plants, two of which were acquired from DowElanco, and two others that were modernized and expanded this year. Four smaller, less efficient, seed plants are being closed, resulting in the elimination of 51 production positions and relocation of seven others.
�This modern, efficient production system is the foundation for making Mycogen one of the industry�s lowest-cost, highest-quality seed producers,� Eibl said. �Our alliances with DowElanco and Pioneer Hi-Bred also are allowing us to redeploy some of what we had been spending on R&D; to invest in building our business and accelerating commercialization of new products.�
Eibl said some biopesticide research programs are being phased out and several seed research groups are being consolidated or relocated to facilities provided by DowElanco in Indianapolis, Ind., resulting in the closure of Mycogen�s Madison, Wisc., plant science laboratory. In all, 44 research and administrative positions in Madison and Mycogen�s San Diego headquarters are being eliminated and another 29 Madison positions will move to other locations. Six of the employees affected in San Diego will be offered jobs at other locations.
Mycogen�s forward-looking statements are based on projections and estimates regarding the economy and the seed and crop protection industries. Various factors could cause actual results to vary significantly from management�s expectations. These include the impact of weather on production and sales, actions by competitors and regulatory agencies, intellectual property positions, fluctuations in commodity prices and crop acreage and the effectiveness of internal expense controls.
Mycogen is a diversified agricultural biotechnology company that develops and markets technology-based products and provides crop protection services to control agricultural pests and improve food and fiber production. Mycogen Seeds develops and markets planting seeds for improved crop varieties with genetically enhanced insect-resistance and other value-added characteristics. Mycogen Crop Protection develops and markets environmentally compatible biopesticides and provides crop protection services to growers of high value crops in California and Arizona.
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