Lonza Group intends to proceed with a carve-out of its Specialty Ingredients segment (LSI). The decision will see the LSI business under independent management, with increased control over its operations and costs. The segment will remain fully owned by Lonza. The company has already commenced with the separation and expects to complete the process by mid-year 2020.
Sven Abend, Executive Vice President and COO of the LSI segment, commented, “The carve-out represents a significant opportunity for LSI. It will enhance our performance levels by improving efficiency, creating synergies and delivering an improved customer value proposition.”
To further improve business efficiency, Lonza has also announced plans to enter consultations to make around 130 roles redundant, of which around 50 roles will be in Switzerland and 35 will be in the United States. Lonza is working to minimize job losses by transferring impacted employees to vacant positions and offering early retirements where appropriate. This program is limited to the LSI segment and the support functions and does not impact the Pharma Biotech & Nutrition (LPBN) segment.
About Lonza
Founded in 1897 in the Swiss Alps, Lonza today is a global company with more than 100 sites and offices and approximately 15,500 full-time employees worldwide at the end of 2018. The company generated sales of CHF 5.5 billion in 2018 with a CORE EBITDA of CHF 1.5 billion.
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