Transformational Strategy

Lonza has been progressing well on its transformation journey, begun in 2012. The company is continuously developing technologies that enable customers to meet some of the world’s greatest challenges such as the vital need for disease prevention and treatment, clean water, abundant food, advanced materials, and enhanced hygiene and wellness. Lonza operates in two segments:

The Lonza Pharma&Biotech (LPB) segment clusters all of our offerings for pharmaceutical markets, with strong Lonza positions in Custom Development, Custom Manufacturing and Bioscience Solutions.

The Lonza Specialty Ingredients (LSI) segment includes consumer-oriented offerings, with Consumer Care encompassing our Personal Care & Preservation, Nutrition and Hygiene offerings. Specialty Ingredients also benefits from market-leadership positions in Agro Ingredients, Coatings and Composites (formerly Industrial Solutions, now includes Wood Protection) and Water Treatment.

The approach to our market-focused segments is twofold: capitalizing on synergies offered by vital technology links and balancing the risk profile between a more volatile, demanding Pharma&Biotech segment and the more stable Specialty Ingredients segment with GDP-plus growth. The synergies between the segments show how Specialty Ingredients clearly benefits from decades of experience gained from the highly complex Pharma&Biotech activities.

Technology Link Between the Businesses

Lonza in the Future

Throughout 2015 both of our segments continued to work on and to benefit from our three Corporate Strategic Projects, which are an important element for the success of the company: Manufacturing Footprint Optimization, Business Services Excellence and Go-to-Market Excellence. The common goals of these major change projects are improving Lonza’s productivity and profitability, reducing our complexity and costs, increasing transparency and accountability, capturing synergies and initiating a new, broader market focus with an emphasis on innovation.

Our goal is to grow and transform Lonza into a top-tier company in terms of key profitability measures. The transformation of Lonza towards a more customer-focused and market-driven organization has made sound progress and is still ongoing. Lonza will continue to work on a balanced portfolio and to proactively seek to adjust business models to the current market and economic situations.