Novartis Services: Contracts with Vivendi Environnement and JOHNSON CONTROLS signed

01-Dec-2000

As part of the process of outsourcing the non-core activities of Novartis Services, Novartis today announced that contracts have been signed with Vivendi Environnement and JOHNSON CONTROLS. A joint venture is being established with each of the two companies to provide energy supply/waste disposal and facility management/technical services respectively. The new companies – Valorec Services AG and Johnson Controls IFM AG – will commence operations on January 1, 2001.

As previously announced in the press release dated September 19, Novartis has today signed contracts and set up joint-venture companies with Vivendi Environnement and JOHNSON CONTROLS following completion of the process of due diligence, and the formulation and preparation of the legal documents and detailed service level agreements. For a transitional period of two years, Novartis will have minority holdings in the two joint ventures, Johnson Controls IFM AG (Integrated Facility Management) and Valorec Services AG. Novartis has agreed to purchase guaranteed volumes from both companies for a total period of seven years in anticipation of reduced costs. All plant and buildings will remain in the possession of Novartis or Syngenta.

The two new companies have already presented themselves to their future employees and sent them employment contracts. Valorec AG and Johnson Controls IFM AG are offering employees transferring from Novartis comparable conditions of employment.

Valorec Services AG will be responsible for supplying all the energy required by the four Novartis sites in the Basel region, and also for waste and solvent incineration, solvent recycling, and hazardous waste incineration. Some 300 staff are currently employed in these areas.

Johnson Controls IFM AG will be responsible for all activities relating to the maintenance of buildings, production plant and laboratories, as well as for all technical services (surveillance, fire department, postal services, site services, company health service, etc.). At present, around 900 staff are employed in these areas.

Novartis (NYSE: NVS) is a world leader in healthcare with core businesses in pharmaceuticals, consumer health, generics, eye-care, and animal health. In 1999, the Group achieved sales of CHF 25.4 billion (USD 16.9 billion) and invested more than CHF 3.6 billion (USD 2.4 billion) in R&D. Headquartered in Basel, Switzerland, Novartis employs about 66 000 people and operates in over 140 countries around the world. For further information please consult www.novartis.com.

https://www.chemeurope.com/en/news/430/novartis-services-contracts-with-vivendi-environnement-and-johnson-controls-signed.html