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06/07/2006
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| Lonza Completes Negotiation for Full Divestiture of LOFO High Tech Film GmbH.
Transaction Reflects Continued Execution of Strategy for both Lonza and Shinkong
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Lonza Group (SWX:LONN) today announced the signing of an agreement to sell 100% of its shares in LOFO High Tech Film GmbH business (located in Weil am Rhein / Germany) to Shinkong Synthetic Fibers Corporation (SSFC), headquartered in Taipei, Taiwan. SSFC will assume full ownership of the business and all related assets through a wholly owned subsidiary. Formal closing of this agreement is expected towards the end of June.
“We are pleased to have found a true strategic owner for our LOFO business with Shinkong Synthetic Fibers Corporation,” said Stefan Borgas, Chief Executive Officer of Lonza. “We believe that Shinkong has the vision and leadership to position LOFO for continued success.”
Stefan Borgas continued, “Over many decades, Lonza has enjoyed the dedication and innovative drive of the LOFO employees, the organization’s performance and the numerous contributions of the business. The completion of this divestiture is part of Lonza’s overall strategy that is focused on delivering sustainable value to our customers in the life sciences industries. LOFO’s main focus on the fast growing, high tech electronics applications, particularly for the FPD (flat panel display) will better fit into Shinkong’s strategy. Lonza was successful in ensuring a partner willing to continue to grow LOFO in these markets. The sale proceeds will assist in our long-term growth initiatives.”
In a joint statement, Stefan Borgas, Lonza CEO, and Dr. Eric T. Wu, Chairman of Shinkong Synthetic Fibers, said, “This is a celebrated transition for LOFO High Tech Film. This action is the right strategy, at the correct time, for the appropriate reasons. The transaction is beneficial to both parties: it is a win-win for our current and future customers, the companies, for the employees at LOFO, for the City of Weil am Rhein and to both our shareholders.”
Lonza-Werke was founded in 1928, and changed its name to LOFO High Tech Film GmbH in 1999. LOFO is a pioneer of high tech solvent cast films, and is one of the world’s leading specialists in this market segment. Applications for the innovative film solutions include electrical, opto-electronic, such as TAC film (triacetyl cellulose) and technical fields.
Lonza has been advised on this transaction by Frankfurt based investment bank Metzler Corporate Finance.
About Lonza
Lonza, a chemical and biotechnology company driven by the life sciences, generated sales of CHF 2.52 billion in 2005. Headquartered in Switzerland, Lonza operates 22 production and R&D sites around the world. Its 6300 employees are passionately committed to delivering sustainable value to their customers. Lonza is one of the leading custom manufacturers of chemical intermediates, active ingredients and biopharmaceuticals for the pharmaceutical and agrochemical industries. On the basis of organic and performance chemicals, and biotechnology platforms, Lonza creates value-added solutions for the nutrition, hygiene & personal care, wood & water treatment and industrial specialty markets. Lonza also offers polymer intermediates, resins and compounds. Lonza is listed on the SWX Swiss Exchange. Further information can be found on the website www.lonza.com.
About Shinkong Synthetic Fibers Corporation (SSFC)
Shinkong Synthetic Fibers Corporation headquartered in Taipei, TAIWAN was founded in 1968. It manufactures a family of polyester products such as polyester filament yarn, PET bottle resins, engineering polymers and PET films with annual worldwide sales of about USD$660 million in 2005. In recent years, SSFC has aggressively engaged in company transformation into making high value-added material such as optical grade PET films and its derivatives for the FPD (Flat Panel Display) industry. SSFC, a listed company on the Taiwan Stock Exchange, a member of the Shinkong Group which is among the top four business groups in Taiwan. Further information can be found on the website www.shinkong.com.tw.
For further information about Lonza:
Corporate Communications / Investor Relations
Margot Connor
Tel +41 61 316 8566
Fax +41 61 316 9566
Mobile +41 79 401 2832
margot.connor@lonza.com
For further information about SSFC:
Corporate Communications
Arthur Chen
Tel +886 2 2507 1251 ext.7304
Fax +886 2 2506 6812
arturo@shinkong.com.tw |
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