Evonik restructures key business lines to drive growth and innovation

GERMANY – Evonik, a global leader in animal nutrition and speciality chemicals, is set to undergo a significant restructuring of its Coating & Adhesive Resins and Health Care business lines. 

The reorganisation aligns with the company’s new growth strategy, which focuses on strengthening core areas while divesting or discontinuing non-core operations. 

This move, designed to enhance competitiveness and accelerate growth, is part of Evonik’s broader plan to target investments more effectively.

The businesses impacted by these changes generate combined sales of approximately €350 (approximately US$380) million. 

In the future, the Health Care division will focus on high-potential growth areas, including lipids for mRNA and gene therapies, advanced drug delivery systems, and cell culture ingredients. 

However, the production of keto acids for pharmaceutical purposes will be phased out by the end of 2025, affecting 260 employees. 

Evonik has committed to supporting these workers in finding alternative employment opportunities within or outside the company. 

Sites in France and China, which also produce amino and keto acids, will undergo strategic evaluation for partnerships or divestments.

The Coating & Adhesive Resins division will refocus on two key growth areas: liquid polybutadienes for adhesives, sealants, and tyres, and speciality acrylics for medical technology and packaging. 

The company’s polyester business, with sales of €150 (approximately US$163) million annually, is being prepared for divestment.

With key production sites in Germany and China, this business, employing around 330 people, is viewed as having strong technological expertise but is better suited for a company where polyester is a core focus.

Evonik’s executive board chairman, Christian Kullmann, emphasised the need for a streamlined approach to harness growth opportunities. 

“Our industry is undergoing fundamental structural change. We must align our resources with our strongest businesses to seize these opportunities quickly,” Kullmann said. 

Chief Human Resources Officer, Thomas Wessel, reassured that employee well-being would remain a priority during the transitions, ensuring socially responsible divestments and closures.

This restructuring highlights Evonik’s commitment to innovation and long-term sustainability. By concentrating on its core strengths, the company aims to unlock significant growth potential in its target markets, reinforcing its position as a leader in the global chemical industry.

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