Syngenta CEO: ‘No formal decision has been made on a potential IPO’
Series CEO spotlight,
Episode 2:
In an in-depth interview with Swissinfo, Jeff Rowe, the CEO of the Syngenta Group, headquartered in Switzerland, explains why being Chinese-owned is good for the company.
In 2017, the Swiss agricultural technology company Syngenta was acquired by the Chinese state-owned group ChemChina for $43 billion (CHF33.3 billion). The record-breaking deal raised multiple concerns in Switzerland and led to the establishment of the so-called “Lex Syngenta”, a set of rules and parliamentary decisions designed to address concerns about foreign state-owned acquisitions of strategically important Swiss companies.
The Syngenta Group, which specialises in crop protection and seeds, is now fully owned by Sinochem Holdings, a Chinese state-owned group created from the combination of Sinochem Group and ChemChina. The Syngenta Group achieved sales of $28.8 billion in 2024 and employs 56,000 people across over 90 countries. Those figures are higher compared to sales of $12.65 billion in 2017 (before the takeover) and $13.6 billion in 2019.
Since the change of ownership, the company has had to navigate rising tensions between China and the United States, across-the-board tariffs imposed by President Donald Trump, and the sometimes controversial image that comes with being linked to the Chinese government.
Swissinfo sat down with Jeff Rowe, CEO of Syngenta Group, at the World Economic Forum (WEF) annual meeting in Davos in January.
Swissinfo: This is your fourth participation in the WEF annual meetings in Davos. What do you expect to take away?
Jeff Rowe: I enjoy the diversity of thought at the WEF. I am intellectually curious and constantly looking for better ways to do things and to experiment. Syngenta is a very innovative company that’s always trying to improve what we do — from serving customers to developing new products. It is inspiring to come here and engage with some of the best and brightest.
There are not many agriculture and farming companies present, but it is valuable to interact with industries far from our own, understand their priorities and concerns, and bring relevant learnings back to our company.
Swissinfo: Syngenta has been under Chinese ownership for nearly a decade. How has this changed Syngenta’s corporate culture, decision-making and long-term strategy?
JR: In 2017, just after the acquisition, there were many concerns in Switzerland — fears of losing a national champion, relocation of activities, and the asymmetry of a state-owned buyer acquiring a private Swiss company. None of that has happened. Not only is Syngenta still in Switzerland, but we are more relevant today than ever before, with group sales almost twice the amount at the time of the acquisition.
“Over the last ten years, we have invested about $1 billion across our different sites in Switzerland.”
Fundamentally, we are a global multinational and our governance reflects that. We have a global leadership team and a global board, including independent directors who are respected and influential people from around the world.
Swissinfo: In your view, what’s the value added by your Chinese shareholders?
JR: They are long-term oriented, with a deep commitment to research and development, and they view investment in Syngenta over the long run. This contrasts with the view of activist investors* that might come in for six months and demand changes that can harm the long-term health of a company.
Swissinfo: Has being owned by a Chinese group affected your ability to attract Western talent or partners?
JR: If you look at who we have recruited and retained since the acquisition, you could argue we have done better than almost anyone else in the industry in attracting and keeping top talent.
Swissinfo: The United States has increased scrutiny of Chinese government policies focusing on national security. How do you maintain trust with US regulators and customers, given that Syngenta is owned by a Chinese state company?
JR: We are recognised in Switzerland, Europe, the United States and globally as a Swiss-based multinational. We have a Chinese shareholder, but our history and legacy are deeply rooted in Switzerland. Most of our leadership team, including myself, is based in Basel. Farmers in the US, India, Brazil and elsewhere generally see us as one of the most well-respected brands in agriculture. We have been in business for over 200 years, and in major markets we are number one or two in almost every segment. We are also well known to regulators as a science-based company that submits the highest-quality and most science-based dossiers possible.
Swissinfo: How exposed is Syngenta to ongoing US–China trade tensions?
JR: Trade matters to our customers because agriculture is among the most heavily traded goods globally. Agriculture should be a bridge between countries because some regions are naturally better suited to food production. Where I come from in the Midwest of the United States, for example, some of the world’s most fertile soils can produce food efficiently; we should not be reducing rainforests or putting low-productivity land into production. Society should optimise where food is produced and create markets to allow it to move.
Swissinfo: But you are still subject to tariffs, for instance when exporting from Switzerland to the US. Are you mitigating risks by adapting the location of your production?
JR: We produce all over the world, with production sites and businesses in every major market. Seed production is mostly local to the country where it is consumed, and we optimise our supply chain to de-risk unforeseen trade disruptions. Our supply chain is sophisticated, and we use artificial intelligence (AI) extensively to optimise reliability, quality and cost. We also use AI to anticipate farmer demand, often 18 months in advance. Our models analyse weather patterns in countries such as Argentina and Brazil, estimate how much corn versus soybeans will be planted, and determine where production should start — whether in India, China, Switzerland or the UK.
Swissinfo: Your planned IPO in Shanghai has been delayed several times. Where does your IPO plan stand today? Do you plan an IPO this year? And would a Swiss or European listing be an option?
JR: We will continue to assess our capital markets strategies based on market conditions and other relevant factors that are in the best interests of our shareholders. At this point, no formal decision has been made on a potential IPO; it would also be premature to speculate about the location of a primary and, if the situation warrants it, a secondary listing. One of my first decisions as CEO was to withdraw the application because it had been pending too long and had become a distraction. Since then I have focused on improving performance, competitiveness, cash flows and margins.
Swissinfo: How do you weigh the benefits of a public listing against increased disclosure and short-term market pressure?
JR: Beyond access to capital, a listing can reinforce our global reputation as a leader in our industry. As part of an IPO process, we will enhance our financial information in line with regulatory requirements to ensure transparency for investors.
Swissinfo: In what way is Syngenta still a Swiss company?
JR: Our relationship with Switzerland is long, deep and mutually beneficial, and we are proud of our Swiss heritage. Our ability to innovate — the lifeblood of the company — is supported not only by Switzerland’s neutrality, but also by its openness to investment.
“Beyond access to capital, a listing can reinforce our global reputation as a leader in our industry.”
It is no coincidence that R&D-driven companies such as Roche, Novartis and Syngenta are based in Basel. The city has a long tradition of innovation, and it attracts top talent from around the world. Having our headquarters in Basel is a real strength. I believe we are the most global company in our industry, with one of the most diverse workforces; that diversity helps us make better decisions in a global business. I also strongly believe in the Swiss education system —my 16-year-old daughter is educated here— and we naturally recruit heavily from Swiss universities.
Swissinfo: How much have you invested in Switzerland since the Chinese takeover?
JR: Over the last ten years, we have invested about $1 billion across our different sites in Switzerland. This demonstrates our commitment to the country.
Swissinfo: Coming back to AI, which countries are embracing it most strongly, including through your CropwiseExternal link platform? Where does Switzerland stand?
JR: Adoption sits on a continuum. Larger, more sophisticated farmers tend to adopt digital and AI faster — for example, in the US, Brazil, Argentina, Ukraine and Eastern Europe. Swiss farmers are, in my experience, very sophisticated and highly focused on sustainability, which can increase operational complexity. In Switzerland, adoption varies by segment: some vegetable producers are very advanced in digital tools; overall, I would place Switzerland somewhere in the middle.
Swissinfo: Using AI could mean farmers require smaller quantities of your crop protection products. How do you balance this with financial goals?
JR: It is a misunderstanding to think our objective is simply to sell volume. Much of our innovation is about reducing volume while improving outcomes; if farmers use less product but get better results, we share in that benefit. Precision application and technology also help address labour shortages, a major global issue for farmers. Farmers are willing to invest in more effective, intelligent solutions even if they buy less volume, because they see the benefits.
Swissinfo: To what extent do you adapt pricing to different regions and customer segments?
JR: We use value-based pricing, looking at the value generated in a given farm and environment — which differs dramatically between places such as Mato Grosso in Brazil and southern India. We also factor in competitive dynamics and generics, so it is not a one-size-fits-all approach. In addition, crop protection solutions account for only about 10% of total farm costs; fertilisers are a much larger cost driver.
Swissinfo: How does climate change affect Syngenta’s business?
JR: I have been in the industry for about 30 years, and even before climate change became a mainstream topic we were already working on related challenges, such as drought tolerance. Climate change has intensified heat stress and extreme rainfall. We must anticipate trends at least ten years out because developing a new product takes about a decade and several hundred million dollars. We analyse how agriculture may shift geographically, including trends towards the southern hemisphere, and what new diseases, pests and challenges farmers may face.
This brings a heightened sense of responsibility: our innovation, our workforce of 56,000 employees, and our significant R&D investment can help address climate-related challenges, and I take that responsibility very seriously.
* Activist shareholders typically buy relatively small stakes in a company with the aim of influencing its strategy or governance structure in order to drastically increase its market value in the short term, often at the expense of its long-term health.
Edited by Virginie Mangin/gw
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