Evonik: Group restructuring aimed at strengthening growth and cost position – Around 3,200 jobs to be cut worldwide

Evonik Industries AG is pressing ahead with a broad restructuring of its portfolio, production network and investment priorities as it seeks to strengthen growth businesses and improve its cost position.

Over the next three years, the specialty chemicals group plans to channel resources more selectively into attractive growth markets, assign clearer strategic roles to its individual businesses and shift more of its international focus toward Asia and the Americas.

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Under the new structure, Evonik’s businesses will be managed either as growth drivers or as cash generators. As part of the reorganization, the company is establishing a new Business Line, “Designed Polymer Solutions,” which will combine activities serving the aerospace, automotive and gas separation markets, including applications for biogas and hydrogen.

Evonik is also stepping up investment in healthcare and biotechnology. Projects worth a combined triple-digit million-euro amount have been launched in Canada and Slovakia, while further investments in Asia and the Americas are under review. In the longer term, the company aims to achieve a more balanced regional sales mix across Europe, Asia and the Americas.

The restructuring also extends to Evonik’s six major production sites in Germany, each of which will be assigned a clearly defined long-term strategic profile. At the same time, the company is continuing to exit businesses that it no longer considers to have sufficient long-term prospects.

Sales processes are continuing for the C4 chemicals activities of Oxeno GmbH and the infrastructure operations of Syneqt GmbH.

Financial headroom for the transformation is expected to come from the “Evonik Tailor Made” efficiency program. Around 3,200 jobs are set to be cut worldwide, including approximately 2,150 positions in Germany.

Through the measures, Evonik aims to lower its cost base while concentrating more strongly on businesses offering higher growth and earnings potential.

More information: www.evonik.de

Evonik Industries AG, Essen, Germany

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