Evonik announces strategic reorganisation for greater efficiency

Evonik, based in Essen, Germany, is embarking on a strategic overhaul of its Technology & Infrastructure (TI) division and administration to sharpen its focus on its core growth sectors. The company’s new direction aims to streamline operations and foster innovation.

The TI division will bifurcate into cross-site technology and site-specific infrastructure segments. This move will simplify the management of these services, catering to the unique demands of both sectors. The technology units, boasting expertise in areas like process technology and digitalisation, underscore Evonik’s edge in the specialty chemicals market. These units are pivotal in achieving the company’s innovation and sustainability goals. 

Christian Kullmann, CEO of Evonik, emphasised, “Our technology units are the bedrock of Evonik’s future.” Consequently, process technology and engineering activities will be globally consolidated, irrespective of their geographical location.

Thomas Wessel, chief human resources officer, added, “Our new structure will bolster our technological prowess during our sustainability transformation.”

On the other hand, infrastructure activities, encompassing logistics and technical services, are site-centric. Recognising their importance, Kullmann said, “Infrastructure is pivotal for Evonik’s operations, and we aim to optimise it.” As a result, infrastructure units in Marl and Wesseling, Germany, and Antwerp, Belgium, will gain independence by the end of 2025. This autonomy will enable these sites to streamline operations, devise unique strategies, and add value.

Kullmann further highlighted Evonik’s commitment to investing in specialty chemicals, noting that every investment strengthens both their operations and their sites. The company also envisions these sites exploring alternative financing avenues or partnerships, especially for sustainability initiatives.

Wessel praised the TI team, saying, “TI and its dedicated employees consistently deliver. We’re committed to ensuring a promising future for them.” Post the legal separation of infrastructure activities, Evonik will evaluate the best financing model for each site, including partnerships, joint ventures, or divestments.

By 2024, the reorganisation will be finalised. The infrastructure units at Marl, Wesseling, and Antwerp will legally separate in the latter half of 2025.

Simultaneously, Evonik is revamping its administration through the “Evonik Tailor Made” program, launching on October 1, 2023. This initiative will first assess the current structures, followed by the design and implementation of more streamlined systems in 2024, with completion expected in 2026.

Kullmann commented on the need for this change, stating, “Evonik’s current administrative structure is intricate and costly. We aim to simplify it to better serve our core businesses.”

Evonik remains committed to safeguarding jobs in Germany, with protection against compulsory redundancies extended until 2032. This applies to both the TI reorganisation and the “Evonik Tailor Made” program.