Basil, Switzerland—Lonza Group announced its intention in a press release to proceed with a carve-out of its Specialty Ingredients segment (LSI). LSI will remain fully owned by Lonza, but will operate under independent management with increased control over its operations and costs. Separation has already commenced and will be completed by mid-year 2020.
Mark Funk, CEO of Lonza Group, said in the release: “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, EVP and COO of LSI, said in the release: “The carve-out 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.”
Lonza has also announced plans to make around 130 roles redundant, the release says. Impacted employees will be transferred to vacant positions or, where appropriate, offered early retirements. This is limited to the LSI segment.