Accelerating operational leverage in Switzerland
Basel, Switzerland, November 24, 2014
- Simplified structures for key global functions
- Certain activities moving to lower cost locations
- Increasing profitability and maintaining focus on innovation
Syngenta today announced important steps in the implementation of the Accelerating Operational Leverage program announced in February 2014. The program targets global savings of $1 billion by 2018 and has three main pillars: Commercial; Research and Development; and Global Operations. Measures are targeted at enhancing commercial effectiveness, improving the speed of innovation and attaining industry-leading cost efficiency.
The actions being implemented from today will result in job reductions and relocations globally including around 500 operational roles in Basel, of which approximately two thirds will be relocated. The total Swiss employee population is currently 3,400.
Mike Mack, Chief Executive Officer, said: "We are today reporting important steps in the implementation of the first phase of our Accelerating Operational Leverage program. In the short term, this will underpin the realization of initial cost savings in 2015 in the context of a challenging market environment. Longer term, the comprehensive actions announced today will enhance both our commercial effectiveness and the power of our innovation.
"With our strong Swiss roots, we remain committed to Basel as our headquarters and value this country's position as a center for business and innovation, as evidenced by our significant ongoing investments here. We undertake to carry out the planned job reductions and relocations in a socially responsible way."
The strength of Syngenta's commitment to Switzerland is demonstrated by ongoing investment in its Swiss sites including the Basel headquarters, where over CHF 200 million is being spent in order to meet the workplace standards of today and the future. In Stein, AG, one of three major global R&D sites, CHF 46 million has been invested in expanding and developing the facilities. The crop protection factory in Monthey, VS, with over 900 employees, will continue to be Syngenta's largest production site worldwide.
Syngenta is one of the world's leading companies with more than 28,000 employees in over 90 countries dedicated to our purpose: Bringing plant potential to life. Through world-class science, global reach and commitment to our customers we help to increase crop productivity, protect the environment and improve health and quality of life. For more information about us please go to www.syngenta.com.
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This document contains forward-looking statements, which can be identified by terminology such as 'expect', 'would', 'will', 'potential', 'plans', 'prospects', 'estimated', 'aiming', 'on track' and similar expressions. Such statements may be subject to risks and uncertainties that could cause the actual results to differ materially from these statements. We refer you to Syngenta's publicly available filings with the U.S. Securities and Exchange Commission for information about these and other risks and uncertainties. Syngenta assumes no obligation to update forward-looking statements to reflect actual results, changed assumptions or other factors. This document does not constitute, or form part of, any offer or invitation to sell or issue, or any solicitation of any offer, to purchase or subscribe for any ordinary shares in Syngenta AG, or Syngenta ADSs, nor shall it form the basis of, or be relied on in connection with, any contract there for.
