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LSI will operate independently in an effort to grow microbial control business
June 3, 2019
By: Kristin Brooks
Managing Editor, Contract Pharma
Lonza Group plans to spin-out its Specialty Ingredients segment (LSI), which will operate under independent management, with increased control over its operations and costs. The segment will remain fully owned by Lonza. The company already began the separation process and expects it to be complete by mid-2020. The spin-out will make around 130 roles redundant, which will impact around 50 roles in Switzerland and 35 in the U.S. 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. Lonza Group chief executive officer 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 vice president and chief operating officer 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.”
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