Specialty Ingredients Segment
In the Specialty Ingredients segment, we supply innovative solutions that promote health, wellness, beauty, nutrition, hygiene and materials protection. We have four pillars in our Specialty Ingredients segment: Consumer Care, Agro Ingredients, Coatings and Composites and Water Treatment.
Lonza’s Consumer Care business is a global leader in several important chemical ingredient categories that provide health, wellness, beauty and protection claims for our fast-moving consumer goods customers. These ubiquitous materials include actives for antidandruff shampoos, cosmetic ingredients, vitamin B3 compounds (niacin and niacinamide), L-Carnitine and microbial-control solutions, such as disinfectants and sanitizers that help protect us from dangerous and unwanted microbes.
Capitalizing on our broad experience in custom manufacturing in our Pharma&Biotech and Specialty Ingredients segments, Lonza’s Agro Ingredients business offers – in addition to active ingredients for mollusk control – custom agricultural manufacturing services designed to improve crop yields and food quality. Additional offerings include preservatives and additives for crop-protection formulations, as well as animal feed additives.
Coatings and Composites
Formerly known as Industrial Solutions and Wood Protection, Lonza’s renamed Coatings and Composites business has a vast product portfolio that offers quality chemical technologies backed by technical and regulatory expertise to meet our customers’ current and future needs. We are a trusted and innovative supplier of technologies and services used in a wide range of industrial applications, such as coatings for different materials like wood or marine anti-fouling, as well as composite materials for electronics and aerospace.
Our Water Treatment business within Specialty Ingredients is one of the world’s largest suppliers of sanitizers and other treatment chemicals for pools, spas and water parks. We are also rapidly growing sales in the treatment of surface waters, as well as water for drinking, agriculture, irrigation, food processing and industrial applications. For these applications we offer oxidizing and non-oxidizing biocides, proprietary halogen stabilizers and innovative solutions that include proprietary feeder systems and controllers.
Specialty Ingredients Overview 2016
The Specialty Ingredients segment posted sustained strong performance again in 2016 with a sales increase of 3.8% (3.1% in constant exchange rates) to CHF 2.25 billion during 2016. CORE EBIT grew by 8.1% year-over-year to CHF 322 million with further improved margins.
This good progress was driven by the strong results in the Wood Protection, Consumer Care and Water Treatment businesses, as well as by improved product mix and portfolio optimization. The expected slowdown in Agro Ingredients caused by the lower agro market dynamics had some impact on the overall growth for Specialty Ingredients. Lonza will continue to conduct operational and value-chain improvements to further enhance profitability.
In September 2016 Lonza took a further major step along the strategic path as a high-value supplier to the healthcare continuum by acquiring InterHealth Nutraceuticals. With this targeted acquisition, Lonza is expanding our nutritional portfolio and extending our offerings towards strongly growing consumer needs and nutritional trends.
|million CHF||2016||Change in %||2015|
|CORE EBIT margin in %||14.3||13.8|
|CORE EBITDA margin in %||18.4||18.0|