Press Release Summary:
UL has announced that its Board of Trustees has adopted a resolution to create a new for-profit testing and certification subsidiary, which would become a subsidiary of the existing not-for-profit parent company. According to UL Board Chairman Fred R. Marcon, the decision is intended to reinforce the UL's public safety mission by enhancing its growth, competitiveness, and agility in an increasingly complex global marketplace for testing and certification.
Original Press Release:
UL Announces Intent to Establish For-Profit Testing and Certification Subsidiary
NORTHBROOK, IL (August 28, 2007) - Underwriters Laboratories (UL), a world leading product safety standards and testing organization, today announced that the company's Board of Trustees has adopted a resolution to create a new for-profit testing and certification subsidiary. The for-profit entity would become a subsidiary of UL's existing not-for-profit parent company.
According to UL Board Chairman Fred R. Marcon, the decision, taken at UL's August 22 Board meeting, is intended to reinforce the company's public safety mission by enhancing UL's growth, competitiveness and agility in an increasingly complex global marketplace for testing and certification.
Marcon stated that, "Since our founding in 1894, UL's mission has always been, and continues to be, to promote safe living and working environments for people by the application of safety science and hazard-based safety engineering. While our parent company will remain as a not-for-profit enterprise, we believe that a for-profit subsidiary company will provide us access to new resources that will enable UL's management, led by CEO Keith Williams, to vigorously pursue our mission globally with the quality, integrity and independence that are our hallmarks."
Williams stressed that the competitive advantage of a for-profit subsidiary would accelerate the company's efforts to advance its mission. "Safe living and working environments are a basic expectation of people around the world. UL plays a critically important role, collaborating with governments, industry, retailers, consumers and international bodies to create and implement standards and testing that lead to safer environments. Our independence, combined with new and increased resources, will allow us to pursue this mission more robustly in more parts of the world and allow us to enter new areas where our unique knowledge and skills can contribute to a safer world."
UL expects to set a timetable for establishment of the new subsidiary after consultation with the organization's members and various regulatory and accrediting bodies.