Lonza Specialty Ingredients carve-out gets microbial control focus

Carve-out will see the LSI business under independent management, with increased control over its operations and costs

Lonza Group has announced its intention to proceed with a carve-out of its Specialty Ingredients segment (LSI). This segment encompasses the industrial water treatment activities of the company and the move signals a focus on microbial control.

The decision will see the LSI business under independent management, with increased control over its operations and costs, however, the segment will remain fully owned by Lonza. The company has already commenced with the separation and expects to complete the process by mid-2020.

Lonza Group CEO, Marc Funk, said: “This is an important moment for our business and the LSI segment. 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 VP and COO of the LSI segment, said: “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. The carve-out will also deliver greater levels of transparency and control, which will give us the opportunity to shape our future and drive our success.”

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 US.

Lonza is working to minimise job losses by transferring impacted employees to vacant positions and offering early retirements where appropriate. This programme is limited to the LSI segment and the support functions and does not impact Pharma Biotech & Nutrition.

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