updated: 12/13/2012 8:33:42 AM

German Company to Cut Indiana Jobs

InsideINdianaBusiness.com Report

A German company has announced plans to cut 45 positions at its Tippecanoe County facility. Evonik Degussa Corp. says the move is designed to improve flexibility and increase competitiveness.

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Evonik manages its North American operations through an office in New Jersey.

The company completed the acquisition of Tippecanoe Labs, near Lafayette, from Eli Lilly and Co. (NYSE: LLY) in 2010.

December 12, 2012

News Release

LAFAYETTE, Ind. - As part of its global strategy, Evonik Degussa Corporation today launched an initiative across its Health Care manufacturing sites including Tippecanoe Laboratories in Lafayette, Indiana, to improve the flexibility of business processes, implement innovative production operations and increase competitiveness.

The initiative - part of a global Evonik Health Care business program to add value for its customers via improved product and service portfolio and competitive performance - will not impact customers or affect Tippecanoe Laboratories safety and environmental performance. As a result of the new business model, staffing at Tippecanoe Laboratories will be reduced by 45 positions.

“We are focused on being a leading Contract Manufacturing Organization for the pharmaceutical industry and we are changing our operational model to further strengthen our position” said Dr. Jean-Luc Herbeaux, Senior Vice President and Head of the Health Care business at Evonik. “Our global sites like Tippecanoe Laboratories are core elements of this initiative. We will leverage skills and competencies to improve internal business operations and increase our flexibility and agility. This initiative is expected to benefit our customers while assuring reliability and sustainability with respect to compliance and performance improvements.”

Keith Baumann, Director of Human Resources at Tippecanoe Laboratories, said that the steps taken today will enable Tippecanoe Laboratories to become the first choice for pharmaceutical customers for contract manufacturing services.

“To successfully meet global challenges, we must continually improve the way we work and manufacture Active Pharmaceutical Ingredients (APIs) at Tippecanoe Laboratories, Baumann said. “The transformation of our Lafayette facility is necessary in today’s marketplace and it in no way reflects on the performance of the outstanding Tippecanoe Laboratories team. We recognize this decision affects our employees and the Lafayette community and as a long standing member of the community, are committed to minimizing any impact.”

Employees at Tippecanoe Laboratories impacted will be provided with a severance package, including outplacement services.

Tippecanoe Laboratories produces active pharmaceutical ingredients. A dosage form of a drug is traditionally composed of the API, which is the active drug itself, and excipients, which constitutes the substance of the tablet or the liquid the API is suspended in.

Tippecanoe Laboratories has an outstanding environmental and safety record. In one recent example of the strong commitment to continued improved safety and compliance culture, management honored Tippecanoe Laboratories employees for working over five million hours without a Lost Time Accident.

For additional information about Evonik in North America, please visit our website: www.evonik.com/north-america

Company information

Evonik, the creative industrial group from Germany, is one of the world leaders in specialty chemicals. Its activities focus on the key megatrends health, nutrition, resource efficiency and globalization. Profitable growth and a sustained increase in the value of the company form the heart of Evonik’s corporate strategy. Evonik benefits specifically from its innovative prowess and integrated technology platforms. Evonik is active in over 100 countries around the world.

Source: Evonik Degussa Corporation

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