Lonza to carve out of Specialty Ingredients
5th June 2019
Switzerland-based fine chemicals producer Lonza plans to proceed with the carve-out of its Specialty Ingredients (LSI) segment under independent management, giving it increased control over operations and costs. LSI will, however, remain fully owned by Lonza.
The separation has already started, and the company expects to complete the process by the middle of 2020.
Lonza’s CEO Marc Funk said: “Our decision will allow the segment to focus on its strengths and drive future growth in a dynamic and competitive environment. More widely, it reflects our commitment to enabling the segment to become the leading global player in microbial control.”
Sven Abend, executive vice president and chief operating officer of the LSI segment, added that the carve-out will improve efficiency, create synergies and also deliver greater levels of transparency and control.
Lonza has also announced plans to start consultations on 130 job losses, of which 50 roles will be in Switzerland, and 35 will be in the US. With this step, the company hopes to further improve its business efficiency. Where possible, Lonza said it would transfer employees to vacant positions and offer early retirement.
According to Lonza, the proposed layoffs are limited to LSI and support functions and do not impact its Pharma Biotech & Nutrition segment, the company added.
Photo: © Lonza
Lonza plans to carve out its Specialty Ingredients (LSI) segment.
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