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Lonza Announces Job Losses at Swiss Plants.

March 30 2010 - Cost-cutting measures in Lonza production plants at Visp and Basel will not affect feed industry related product output, the company said today.

The company announced the loss of 193 jobs at the plants as part of a cost cutting exercise aimed at reducing fixed costs by CHF 40 million over the next 18 months.

A spokesman for the company told Feedinfo News Service that the company's Visp plant produces a number of products for the feed industry. He said output of these products would not be affected by the cost reducing measures.

He added: "The objective is to strengthen Visp's leading position in the areas of innovation and integrated value creation for life sciences. To safeguard this objective, fixed costs in Basel and Visp are to be reduced by around CHF 40 million over the next 18 months as part of a company-wide re-engineering initiative. The most important measures to achieve the desired cost reductions -- of CHF 500 million on an annual fixed cost basis -- will involve downsizing our personnel resources in line with the changed market conditions, reviewing services, leveraging synergies and simplifying work processes."

"Our operations in Switzerland face great challenges. The global economic crisis and the structural changes in the pharma industry have accelerated and intensified the cost pressures we face, in addition to the effects of exchange rate trends with a strong Swiss franc, and increased energy and transport costs. The measures we are implementing will allow our operations in Switzerland to remain competitive," said Stefan Borgas, CEO of Lonza.

Lonza is one of the world's leading suppliers to the pharmaceutical, healthcare and life science industries. Its products and services span its customers' needs from research to final product manufacture. Lonza is the global leader in the production and support of active pharmaceutical ingredients both chemically as well as biotechnologically. Lonza is headquartered in Basel, Switzerland and is listed on the SIX Swiss Exchange. In 2009, Lonza had sales of CHF 2.69 billion.
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Publication:Feedinfo News Service
Date:Mar 30, 2010
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