Posted By Global Banking and Finance Review
Posted on December 13, 2024
(Reuters) - Germany's Evonik plans to restructure its business lines into two segments, it said on Friday.
From April 1, the group will focus on its two core operating businesses: Custom Solutions and Advanced Technologies.
Evonik's Custom Solutions segment includes additives for paints and coatings, as well as products for the cosmetics and pharmaceutical industries. Its Advanced Technologies segment focuses mostly on high performance polymers and hydrogen peroxide production.
By the end of 2026, Evonik plans to reduce the number of management levels from an average of 10 to a maximum of six across the group, in line with its "Tailor Made" reorganisation programme.
The group, which makes chemicals used in products from animal feed to Pfizer and BioNTech's COVID vaccine, announced up to 2,000 job cuts by 2026 in March with the goal of reducing costs by 400 million euros ($437.3 million) annually.
Germany's chemicals industry suffered heavily throughout 2023 due to high production costs and weak demand amid rising inflation. Initial signs of recovery in the first quarter of this year have begun to fade away.
(Reporting by Anastasiia Kozlova and Amir Orusov, Editing by Friederike Heine)