Lonza Consolidates Chemical Ops

BASEL, Switzerland Lonza Group Ltd. announced in October 2009 it would make moves to reduce its fixed costs and consolidate business operations to adjust to the changing market environment. Accordingly, the company will strengthen its operation in Nansha, China, and close three existing production sites. Approximately 175 employees will be affected by the closures in Conshohocken (Riverside), Pa., Shawinigan, Quebec, and Wokingham, England. The total restructuring cost is around CHF 140 million (US$TK million), including impairments of assets and other restructuring activities, and will be booked into 2009.

The closure of the three sites will help to optimize our global operational network and further increase the competitiveness for our customers. The re-engineering project is a key element in our endeavor to bring Lonza back to a sustainable growth, said Lonzas CEO, Stefan Borgas. We will continue to drive this project throughout the year and we will see many initiatives rising from it. We are confident that we are on the right track and that the identified measures support the Lonza strategy.