Long-Term Investment Lonza’S Aim Is Continuous Growth with Above-Average Profitability
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9/2007 9/2007SeptemberSeptember Management Production Shareholders Pay The N ewsPa P e r Enthusiasm for New Tech- for Return nologies – Ultrasonic Level on Assets for T he chemical aN d Measurements in Decline? Page 4 life scieN ces markeT s Page 21 Powered BY Long-term Investment Lonza’s Aim is Continuous Growth with Above-average Profitability y making several changes, Lonza strengthen our microbial bio- At the end of July, you present- S. Borgas: By taking over the tech business and help to extend ed a strategy for this business bio-pharma business of Cam- has focused its portfolio on Lonza’s leading position as a area. Could you explain this brex, we have strengthened the life-sciences market. After custom manufacturer. The oth- briefly? our existing microbial busi- B er one will form an independent ness and, in 2007, Lonza was previously divesting itself of its special Newsflow business unit for us under the S. Borgas: Our aim is to the market leader in microbial portfolio and chemical/industrial chem- name of Lonza Bioscience. position Bioscience as the lead- bio-pharmaceutics. In addition Ineos completes Borealis deal. Fol- ing supplier of services and bio to our large- and small-scale ical business, the Swiss company took lowing clearance by the European Lonza Bioscience, the larger of materials for the life-sciences existing capacity in Visp, Swit- Commision, Ineos has completed over the bio areas of the US-company the businesses purchased from industry. Lonza’s new business zerland, we have gained fur- the purchase of the Borealis petro- Cambrex, is a new business area area completely met all of our ther medium- and small-scale Cambrex in February 2007. So this year, chemicals business in Norway for for Lonza. What expectations do expectations in the first half production capacity as well as €290 million. The business includes for the first time, life sciences make up you have? of 2007 and, after excluding skills in the field of bio-pharma a 50 % interest in the Noretyl ethylene short-term integration costs, services. We have already re- over 90 % of the total turnover. Birgit cracker at Rafnes and three polyole- S. Borgas: Lonza Bioscience achieved a high margin. The vised our strategy for this area fin plants based at the nearby Bamble Megges and Michael Reubold asked deals in specialised consum- integration is running to plan. and communicated this in mid site. The cracker was commissioned in er goods for bio-production, We have divided Bioscience into May. Stefan Borgas, CEO of Lonza, about the 1977 and expanded by 100,000 t/a in such as media, serums, cell four business units: cell therapy, We will consolidate our US 2005, and currently has a capacity of integration of the new business areas cultures, analytical test kits and rapid testing systems, media, activities in this field in Hop- 557,000 t/a in addition to a propylene so on. Then there is the classic and cell discovery & molecular kinton, Massachusetts. This will and the strategy behind concentrating capacity of 80,000 t/a. contract manufacturing busi- biology. In order to ensure the take place in close collaboration E www.ineos.com on the life science markets. ness in a brand new technology: development of the bioscience and with the full agreement of cell therapy. Here we grow new business, we intend to open up our customers. We will addition- Cognis to sell Pulcra. Shortly after CHEManager Europe: Mr Borgas, therapeutics that in 5 – 10 years new business areas and access ally invest over US$30 million in separating the process chemicals Lonza took over the bio areas of will perhaps be able to cure some very promising technology Hopkinton, in order to support business from the core business Cog- Cambrex six months ago. What illnesses such as Parkinson’s platforms. our plans for growth in produc- nis is intensifying efforts to divest the was the strategy behind this or bone marrow incompatibil- tion and microbial process de- division, which is called Pulcra since acquisition? ity that have so far remained How will the area of microbial velopment. Through this expan- July 1. In order to find a partner or an untreatable. And Lonza would bio-pharmaceutics be organised sion we will be able to create up investor, Cognis has hired the M&A S. Borgas: We took over two ar- then be there as a production in the future, and how are you to 250 additional jobs. specialist Lincoln. Pulcra had sales eas from the American compa- Stefan Borgas expert, which is a further option integrating these locations into of €258 million in 2006 and has ny Cambrex. The first one will CEO of Lonza for the future. your existing business? E Continues Page 11 production sites or service centers in germany, Turkey, Italy, Spain, Mexico, Brazil, China, India, Indonesia and the US. Pulcra’s products are mainly used in the textile and leather industries. Competence And Dedication Rules Of The Game E www.cognis.com Bayer to withdraw from NYSE. Bayer In Custom Manufacturing Size is Not All that Matters Distribution of Pharma Chemicals Requires Expertise follows Ciba, BASF and Eon as all com- panies are delisted from the New York r. Karl-Gerhard Seifert, who Reubold asked him about his ith external sales of Brenntag manage the Stock Exchange. The company expects € successful coexistence of some €15 million annual savings. The has been working in the strategies for AllessaChemie 6.1 billion in 2006 two such different fields management expects the delisting by chemical industry for 35 and AllessaSyntec, and how and over 300 sites as commodities and phar- early October. W maceutical chemicals? D E www.bayer.com years, resigned from his function as he appraises the current situ- around the world, Brenntag is a lead- Managing Director for AllessaChemie ation of the global fine chemi- ing international company in the dis- W. Gierling: Brenntag’s OM Group buys Borchers. North many years of experi- American OM Group will buy additive in January. He is now an “active chair- cals industry. tribution of industrial and speciality ence with pharmaceuti- specialist Borchers from Lanxess. The man”, who discusses the strategy and cals customers in Europe transaction is due to the agreement chemicals. Building on its considerable CHEManager Europe: Dr. enables us to identify of German authorities. The closing future development of the company Seifert, you have been a market penetration in basic chemicals, customers’ needs well in of the deal is expected for the end with the managing directors. He is also driving force during both advance and offer serv- of September. Borchers employs 90 Brenntag is now focusing on its spe- management buy-outs, ices to optimise sourcing people and had total sales of €36 a member of the Advisory Board of which have resulted in ciality chemicals business in Europe, and production proc- million in 2006. AllessaSyntec. Dr. Seifert played an the formation of Alles- esses. With regard to E www.lanxess.com saChemie in the year and the field of pharmaceuticals is basic chemicals, we al- active role in the management buy- 2001 and AllessaSyntec in ready offer tailor-made Nestlé integrates Gerber. Nestlé fin- one of the strategic growth segments. outs (MBOs) leading to the creation of 2004. What has been the solutions for many of ishes the acquisition of US baby food starting position in both Michael Reubold asked Wilhelm Gier- our customers: in terms company Gerber after all government both companies. He combines a distin- cases, and were those of specifications, pack- authorities agreed. Nestlé acquired ling, European Business Development guished track record in international comparable? age size, labelling and Gerber from Novartis in April for US- Dr. Karl-Gerhard Seifert Wilhelm Gierling Chairman of AllessaChemie and member of Manager Pharma at Brenntag’s Ger- European Business Development Manager documentation, right up $5.5 billion. Nestlé is quickly looking senior management in the chemical the Advisory Board of AllessaSyntec K.-G. Seifert: The start- Pharma at Brenntag to disposal and auditing to integrate the new business, which industry and an excellent knowledge ing positions were simi- man central office in Muelheim/Ruhr of the manufacturer. For includes 4,500 employees. The take- lar, but not completely compa- CHEManager Europe: Mr. Gier- customers who require support over was effective September 1. of global finance and investment glomerate Hoechst AG (1988 – 1997), about the strategy for expanding their rable. AllessaChemie had been ling, in the distribution of with the synthesis of active in- E www.nestle.com environment. Prior to Allessa, he as CEO of Clariant (1997 – 1999) and formed in 2001 mainly as a cus- pharmaceuticals business, and the par- chemicals, there are very few gredients or want assistance tom manufacturing company full-line distributors with a bal- in developing formulations, we served as a member of the Board of head of Morgan Grenfell Private Equi- ticular demands this market makes on anced portfolio of industrial and Management of former German con- ty Ltd, Germany (1999– 2000). Michael E Continues Page 9 chemicals distributors. speciality chemicals. How does E Continues Page 14 e reader service Aliphatic CF3 Building Blocks: Any Scale, any Time! don’t have your own Solvay Organics GmbH chemanager europe? Headquarters Buchenallee 20 D-51427 Bensberg, (Cologne) wrong address? Germany G· Fee paid · D 12264 paid · D 12264 G· Fee Tel: +49 2204 926-900 a [email protected] Send an e-mail at North American Sales Office · PF 11 05 64 · 64220 Darmstadt 05 64 · 64220 · PF 11 c/o Girindus Sales Corporation G chemanager-europe@ 8560 Reading Road Cincinnati gitverlag.com Ohio 45215, USA Solvay Tel: +1 513 679 3031 [email protected] Organics Pressepost · DP GIT Verla [email protected] Page 2 MARKETS & COMPANIES CHEManager Europe 9/2007 CONTENT Front Page Meeting Pharma’s Future Challenges .........................................................