Swiss-based chemicals giant Lonza Group AG, reporting its 2013 full-year results, said global wood protection product volumes had improved in the US and Europe because of more favourable economic conditions, particularly in construction markets.
It also confirmed it had started the carve-out process for its wood protection business on January 1 as part of its plans to focus on speciality ingredients/biotech markets.
In the UK, Castleford-based Lonza Wood Protection – part of Lonza’s Arch Timber Protection Ltd business – supplies the Tanalised and Tanatone timber preservative brands for pressure treatment of timber, as well as brush-on end-grain preservative products and Dricon and Non-Com fire-retardant products.
“Led by an improving economy in Europe and new product roll-outs, sales in Europe, the Middle East and Africa showed a healthy increase over last year,” Lonza said.
“The gains in Europe were mostly seen in the UK, as signs of recovery were visible in both the construction and agricultural segments.”
Lonza AG said the carve-out of its wood protection business involved “all strategic options” being considered for the division’s future development. The company has previously signalled its intention to reach out to interested parties once the carve-out is complete.
Group-wide, Lonza reported a net profit of CHF87m, down 44.2% from the CHF156m reported in 2012. Earnings before interest, tax, depreciation and amortisation were up 4.4% to CHF647m, while sales reduced 4.2% to CHF3.58bn.
