By Matthias Inverardi

(Reuters) -Evonik Industries aims to generate additional 1 billion euros ($1.13 billion) of core profit by 2027, compared to 2023, as the German chemicals group implements its new strategic setup.

This increase will come from both business growth and savings, Evonik said in a statement ahead of its investor day on Thursday.

The Essen-based company projected around 500 million euros from internal growth, driven by higher capacity utilization of new plants and new products.

Its optimization programme should bring in further 500 million euros, with around 400 million of those coming from previously announced cost-cutting measures.

Aiming to slim down its business, Evonik in December announced the biggest restructuring programme in its history, which could reduce its workforce by more than a fifth.

The company also reaffirmed its statement from April that it would suspend acquisitions for the next two years to focus on restructuring.

"Until then, we are ruling out acquisitions – but this will create opportunities afterwards," Chief Financial Officer Maike Schuh said in the statement.

The 1 billion euro target can be achieved even without the sale of Evonik's C4 business, though it will include some portfolio measures, Chief Operating Officer Custom Solutions Lauren Kjeldsen told Reuters.

Evonik has previously said it plans to sell the unit producing C4-based large-volume intermediate chemicals and additives. The process had not started yet.

Meanwhile, it has begun the process of selling its polyester activities in German town of Witten and Shanghai, which employ around 350 people.

"We are working consistently on two sides of the same coin – on our growth opportunities and on our costs," CEO Christian Kullmann said in the statement.

($1 = 0.8853 euros)

(Reporting by Matthias Inverardi and Anastasiia Kozlova, editing by Milla Nissi-Prussak)