Evonik is reorganising two business lines to strengthen its growth prospects. The Coating & Adhesive Resins and Health Care Business Lines will concentrate on their respective core businesses to focus investments on them in future.
The businesses outside these core areas will either be sold to new owners or integrated into partnerships. In some cases, businesses will be closed down responsibly. Altogether, the businesses affected by these changes generate €350 million in sales.
“Our industry is undergoing fundamental structural change worldwide,” said Christian Kullmann, chairman of the executive board of Evonik. “We will align all our resources with our strongest businesses. Only then can we seize growth opportunities in these markets at the necessary speed. Conversely, this also means that for businesses where we cannot offer appropriate prospects at Evonik, we will implement solutions outside Evonik. The realignment of the two business lines exemplifies our approach. By concentrating on our strengths, we can unlock the growth potential that lies within our company.”
The Health Care business will focus on lipids for mRNA and gene therapies, drug delivery systems, and cell culture ingredients, and will end production of keto acids in Hanau in late 2025. Strategic options are being explored for similar sites in Ham, France, and Wuming, China. The amino and keto acids business generated about €100 million in sales annually.
“Our amino and keto acids businesses in Ham and Wuming are strong and offer great potential,” says Caspar Gammelin, head of the Nutrition & Care division. “We are therefore not considering closing them. With investments in these sites, these businesses could reach their full potential and flourish. We are therefore examining options such as partnerships or divestments that would allow the businesses to prosper.”
The Coating & Adhesive Resins business will focus on two core growth areas: liquid polybutadienes for adhesives and sealants or tires, and specialty acrylics for medical technology and packaging. The polyolefins business, with sales of around €100 million, will be integrated into the C4 chain business at Evonik. The polyester business will be sold to new owners. It has major sites in Witten, Germany, and Shanghai, China, and generates an annual turnover of about €150 million.
“The technological expertise of our polyester business is extensive,” says Lauren Kjeldsen, head of the responsible division Smart Materials. “But to be successfully competing in the long term globally and to generate the necessary margins, investments are needed – and other companies for which polyester is a core business can realize these better than we can.” The search for interested parties is to begin still this year.
Thomas Wessel, Chief Human Resources Officer and Labor Director of Evonik, also commented, “Whether we transfer businesses to new owners or discontinue them in individual cases, we always do so in a socially responsible manner with close involvement of employee representatives. Also, when divesting businesses we have proven: We select investors carefully and always have the future of our company and the well-being of our employees firmly in mind.”
Source: chemanager-online.com
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