Novartis selects Vivendi Environnement and JOHNSON CONTROLS as future partners for infrastructure services

20-Sep-2000

Basel, 19 September 2000 – Novartis today announced the outsourcing of non-core activities to Vivendi Environnement and JOHNSON CONTROLS. Subject to successful completion of the due diligence procedure, two joint-venture companies are to be established – for energy supply/waste disposal and for facility management/technical services respectively. All 1,250 associates in the areas concerned will be taken on by the partner companies. The outsourcing process is to be completed by the end of the year. After an in-depth examination, Novartis has selected Vivendi Environnement as its outsourcing partner for energy supply and waste disposal, and JOHNSON CONTROLS as its partner for facility management and technical services. The next stage of the outsourcing process will involve careful auditing of accounts ("due diligence") and the formulation and preparation of the contracts and detailed service level agreements. This work is expected to be completed by the end of November, so that the services concerned can be provided by the new partner companies at the Klybeck, Rosental, St. Johann and Schweizerhalle sites from 1 January 2001. "Both companies possess the necessary competencies and have a corporate culture that matches our ideas about performance and personnel policies," commented Hans Kindler, member of the Novartis Executive Committee Novartis. "New prospects will open up for the associates moving to our new partner companies. In future, they will be working in the respective companies' core business, with scope for development as a result." Vivendi Environnement and JOHNSON CONTROLS have undertaken to maintain equivalent conditions of employment for the employees transferred. A joint venture is to be formed with each of the two companies, in which Novartis will have a minority holding for a transitional period of 2 years. Novartis has agreed to purchase guaranteed volumes from both companies for a period of 7 years in anticipation of reduced costs. All plant and buildings will remain in the possession of Novartis or Syngenta, with the exception of the hazardous waste incinerator (RSMVA), which may be sold. Vivendi Environnement will be responsible for supplying energy to the four Novartis sites in the Basel region, and also for waste and solvent incineration, solvent recycling, and hazardous waste incineration. Some 290 staff are currently employed in these areas. JOHNSON CONTROLS 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, 960 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 (including Agribusiness) achieved sales of CHF 32.5 billion and invested more than CHF 4.2 billion in R&D. Headquartered in Basel, Switzerland, Novartis employs about 82 000 people and operates in over 140 countries around the world. The Group recently announced plans to spin off its crop protection and Seeds sectors and to merge them with the agrochemicals business of AstraZeneca in the second half of 2000. Vivendi Environnement (Paris Stock Exchange code 12414) is the world leader in Environmental services to municipal and industrial clients. Present on the five continents and in more than 100 countries Vivendi Environnement employs about 180 000 people. Vivendi Environnement is the No.1 provider of integrated environmental services solutions through its 4 activities: Waste (Onyx), Energy (Dalkia), water (Vivendi Water) and transport (Connex).

https://www.chemeurope.com/en/news/59/novartis-selects-vivendi-environnement-and-johnson-controls-as-future-partners-for-infrastructure-services.html