Evonik to reduce size of Executive Board and streamline administrative structures

The Supervisory Board of Evonik Industries AG unanimously passed resolutions relating to the successful focusing of the Group on specialty chemicals and its future growth targets. Over the past five years, Evonik has been restructured from an integrated conglomerate to a listed specialty chemicals company.
Following the refocusing of the business, the next step is to consolidate management and administrative processes. Within the Executive Board, operational responsibility for the entire specialty chemicals business will be transferred to Patrik Wohlhauser as of Jan. 1, 2014. Thomas Haeberle and Dahai Yu will be leaving the company by amicable and mutual agreement effective December 31, 2013.
Further, Evonik’s Supervisory Board unanimously welcomed the Executive Board’s decision to undertake extensive streamlining of Group-wide administrative structures. In many respects, the present administrative functions still reflect the needs of Evonik’s former structure as a conglomerate. Moreover, administrative expenses are now approximately 26% higher than they were in 2008. Evonik intends to extend the progress made in the operating units through the On Track and On Track 2.0 efficiency enhancement programs to its administrative organization. The goal is to make cost savings of up to EUR 250 million (USD342 million) a year by the end of 2016.
Klaus Engel, chairman of Evonik’s Executive Board, explained: “We want to create an administrative organization that has a common stamp worldwide, without duplication of responsibilities on the one hand and unacceptable additional workloads on the other. To
achieve this, we will be reviewing all administrative workflows and systematically identifying scope for improvement. Creating a more efficient Group-wide administrative organization will also make us faster and more agile in the marketplace.”
The planned restructuring of the administrative functions will result in savings in material and personnel expenses. The related job cuts will be achieved in a socially compatible manner in close collaboration with representatives of the workforce and the German Mining, Chemical and Energy Industrial Union (IG BCE). The scope and nature of the necessary measures will be examined in the coming months. Existing framework agreements, including the agreement to refrain from dismissals for operational reasons, will be extended for two years to the end of 2018.
About Evonik
Evonik, the creative industrial group from Germany, is one of the world leaders in specialty chemicals. Profitable growth and a sustained increase in the value of the company form the heart of Evonik’s corporate strategy. Its activities focus on the key megatrends health, nutrition, resource efficiency and globalization. Evonik benefits specifically from its innovative prowess and integrated technology platforms. Evonik is active in over 100 countries around the world. In fiscal 2012 more than 33,000 employees generated sales of around EUR13.4 billion (USD18.3 billion) and an operating profit (adjusted EBITDA) of about EUR2.4 billion (USD3.2 billion) , excluding real estate in both cases.
(September 23, 2013)