Sigma-Aldrich Reorganizes Chemical Business.
St. Louis, MO 11/23/99-Sigma-Aldrich announced a reorganization of its Chemicals business into four new units. The company's Research Chemicals division will become the Laboratory Products and Life Science Products units. The focus of Laboratory Products will be convenience products and the basic service and product needs of individual researchers. Comprising 55% of Sigma-Aldrich's chemical business, the unit will significantly increase R&D funding and product management staffing to develop new products. Life Science Products will concentrate on consulting, R&D and product promotion. The reorganized Fine Chemicals unit will continue serving larger quantity customers and increase its presence in the pharmaceutical outsourcing market. The Diagnostic unit will be reoriented towards niche markets. In addition, the company plans to sell its $250 million metals business and is expected to use the income from the sale to fund the chemical units' capital costs.Sigma-Aldrich stock has been down recently and this reorganization is an attempt to reinvigorate the company. It hopes to restore sales and profit growth to more than 10% per year within the next two years. By orienting its focus towards global markets, new product development, the Internet and the pharmaceutical industry, the company hopes to take advantage of growing markets. Sale of its metals business further reflects its more narrow focus on life science, laboratory, fine chemical and diagnostic customers.
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| Publication: | Instrument Business Outlook |
|---|---|
| Geographic Code: | 1USA |
| Date: | Nov 30, 1999 |
| Words: | 223 |
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