Thursday, August 7, 2008

Lonza's new engineering business

Lonza is starting up a new engineering business that will focus on China. It'll offer engineering, design and maintenance. Quite an interesting way of embedding the company in an expanding market and supplier base. Lonza will raise the production standards of any company they work with. They'll know exactly how the Chinese customer does business, and whether they'd make a good partner (or even acquisition...) for the Swiss fine chemicals leader. It'll be interesting to see how widely the service is engaged. Considering Lonza's reputation, compared with that of Chinese producers, I would think that the main limiting factor will be the price tag. Being able to point to a relationship with Lonza should be a valuable selling point for Chinese companies looking for business in abroad, particularly in the West & Japan.

“This new business unit is a very logical expansion of our existing strengths in manufacturing of complex products. We have built chemical and biotech plants around the world, at very high levels of quality and regulatory compliance,” remarked Lukas Utiger, Head of Life Science Ingredients. “We have built strong project management and maintenance experience in China since the mid 1990’s for the construction and maintenance of cGMP and Food GMP plants which have been certified by global regulators. Our talented and highly qualified staff of 130 technical experts has a strong drive to capitalize on this new business opportunity.”

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