Lonza Group - Strategy

Strategy

With the appointment of Stefan Borgas as new CEO in 2004, Lonza was developing into the direction of life sciences with a clear focus on biotechnology as well as GMP-regulated chemical exclusive synthesis for the pharmaceutical area. Almost all the acquisitions made in the years 2006–2008 included biotech companies from the feed/food and nutrition area. As a result of this realignment towards life sciences, also the classical non-GMP chemistry of the Fine Chemicals division has to be realigned with the goal to increase the focus on nutrition, agro and hygiene. In 2006, the division Polymer Intermediates became independent, which was in line with this strategy. 2007 was characterized by a consolidation of the acquisitions made in the previous year. In 2008, Lonza’s consolidation further continued, flanked by small and mid-size acquisitions as for example the German company amaxa.

At the end of 2009, the management announced to shut down three sites in the US and the UK from which approx. 170 employees were affected. Towards the end of 2010, the cost-reduction program expired, leading to savings of tens of millions. With the acquisition of Arch Chemicals in October 2011, Lonza has further developed its portfolio. In January 2012, Lonza let go of CEO Stefan Borgas, after the net income 2011 was cut almost by half and Borgas had not fulfilled the expectations. As of May 1, Richard Ridinger is the new CEO of Lonza.