Lonza Splits Specialty Ingredients, Plans Job Cuts

Swiss fine chemicals company Lonza is carving out 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 begun, and the company expects to complete the process by the middle of 2020.

“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,” said Lonza group CEO Marc Funk.

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.

The company 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. Where possible, Lonza said it would transfer employees to vacant positions and offer early retirement.

The proposed layoffs are limited to LSI and support functions and do not impact its Pharma Biotech & Nutrition segment, the company added.