Lonza and DSM extend partnership and hint at restructuring

22-Jun-2009 - Last updated on 23-Jun-2009 at 10:30 GMT

Lonza and DSM Nutritional Products have extended a partnership that has been operating for over 40 years in an attempt to remain competitive in difficult economic times.

The two companies share infrastructure in Visp and Lalden in Switzerland which cuts down costs for both partners.

In addition, Lonza supplies services and raw materials for DSM Nutritional Product’s aroma chemicals, vitamins and carotenoids.

“We are very pleased to continue our partnership with DSM. The common utilization of the infrastructure is benefiting both partners. The extended partnership is also a promising commitment to the production sites of Visp and Lalden,” said Lonza CEO Stefan Borgas.

“We have many interests in common here in Visp and Lalden and the collaboration between Lonza and DSM is very close,” added Leendert Staal, President and CEO of DSM Nutritional Products.

However, the companies hint that the extension of the partnership might not be good news for everyone.

In a press announcement, the two companies said under the new contract the ‘organisational setup of the 147 Lonza employees working at the Lalden site of DSM Nutritional Products’ is under review.

CosmeticsDesign contacted both DSM and Lonza about potential changes to the workforce but no details could be given at this time.