New CEO for Lonza
former BASF manager as their new chief executive, after major
losses led to the resignation of Markus Gemuend earlier this year.
Stefan Borgas has held a variety of positions with BASF over the past 15 years, and since 2001 has led BASF's fine chemicals activities, first for the EMEA region and later for the North American business.
Sergio Marchionne, chairman of Lonza's board of directors, said that Borgas' "results-orientation and restructuring track record" had been key to his selection. "The breadth of his experiences and the international exposure he has acquired during his tenure with BASF make him the ideal individual to lead Lonza back to profitable growth," he added.
Profits at Lonza during 2003 fell by 59 per cent on the previous year, despite a number of cost-cutting measures undertaken during the period. While sales of L-Carnitine remained at the 2002 level, despite increased competition from Asian countries, the company was facing overcapacities in its major business of custom manufacturing and a lack of new drug approvals.
Sales were down more than 10 per cent in almost all divisions, leading to a drop of 11.6 per cent in the group overall to SF2,242 million.
At the time, Gemuend who had held the CEO position since January 2002, said that a 'different type of leadership' was required to move the group forward.
