Lonza to Close Los Angeles Plant as Part of Custom Synthesis Production Restructuring Plan

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Researched by Industrialinfo.com (Industrial Information Resources, Incorporated; Houston, Texas). In response to the current tight market conditions facing chemical synthesis of intermediates and active ingredients for the pharmaceutical and agri-chemical industry, Lonza Group AG (Basel, Switzerland) is restructuring their production activities. In addition to the site in Los Angeles, California, Lonza also produces the remaining 85% of current reactor capacity for exclusive synthesis custom manufacturing at their facilities in Conshohocken, Pennsylvania and Visp, Switzerland. With the Los Angeles plant scheduled to close at the end of 2002, production will be transferred to the two remaining sites.

The tightening of exclusive custom manufacturing market has been blamed on various factors, including increased competition from Asian markets and excess capacity at pharmaceutical companies. Lonza is also taking additional organizational actions in an effort to balance demand and supply conditions. An approximate 3.5% reduction of the total Lonza Group workforce will be accomplished by eliminating 50 jobs at Conshohocken and 75 at Visp, along with the estimated 100 that will be lost with the Los Angeles closure. Lonza has announced their intention to be in active discussion and planning over the upcoming transition, meeting with those affected. The current expansion projects at Conshocken and Visp are proceeding according to schedule and will not be affected by the restructuring.

Lonza Group is a Life Sciences driven chemical company headquartered in Switzerland, operating 21 production and R&D facilities in 9 countries. It employs 6400 people worldwide and is the leading supplier of active chemical ingredients, intermediates and biotechnology solutions to the pharmaceutical and agrochemical industries.