Lonza increases working hours at Visp site till 2012 year end

Lonza increases working hours at Visp site till 2012 year end

4:57 PM, 30th June 2011
Lonza increases working hours at Visp site till 2012 year end

  • Temporary worktime increase for all Visp employees until end of 2012
  • Visp site impacted by currency, raw material and energy costs
  • Lonza expects negative currency effect of about CHF 60 to 70 million for 2011

 

VISP, SWITZERLAND: As of 1 July 2011 and effective for the next 18 months, Lonza Visp increases the weekly working hours from an average of 41 to 43 hours for all employees at the Visp site. The site management team took this measure as the profit at the Visp site comes under pressure. The decreasing profitability of the Lonza Visp site is driven by three main factors: the massive strength of the Swiss franc, an aggressive pricing policy of competitors and increasing raw material and energy costs. For the year 2011, Lonza is expecting a negative currency effect of about CHF 60 to 70 million, which strongly impacts Lonza Visp.

With this measure, Lonza believes high plant utilization can be managed without additional staff. The temporary worktime increase provides the necessary flexibility for further optimizations and strategic directions. In the next 18 months, the company will continue to work on changes. This includes a substantial increase of productivity, further optimization of the unique “Verbund” system at the Visp site, optimization of the product portfolio, an expansion of the technology offering and introduction of new product platforms and services.

“We have a high utilization and the plants are working at full capacity, but our profitability is troubled due to the negative exchange rate which increasingly diminishes revenue. The immediate increase of the site’s attractiveness is crucial for future investment decisions and thus also for Lonza’s prosperity in Visp,” said Stephane Mischler, Site Manager, Visp, Lonza.

(C) WOC News

 

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