Evonik restructures coating and adhesive resins and healthcare businesses

Evonik is reorganizing two business lines to enhance their growth prospects. The coating and adhesive resins business line and the healthcare business line will focus on their respective core businesses and concentrate future investments.

The remaining businesses outside these core businesses will be sold to new owners or incorporated into partnerships. In individual cases, businesses will be discontinued in a socially responsible manner. Overall, the businesses affected by these changes generated sales of 350 million euros.

“Our industry is undergoing fundamental structural changes worldwide,” said Christian Kullmann, Chairman of the Executive Board of Evonik. “We will invest all our resources in our strongest businesses. Only in this way can we seize the growth opportunities in these markets at the necessary speed. Conversely, this also means that for businesses where we do not offer appropriate prospects at Evonik, we will implement solutions outside of Evonik.”

In the future, the healthcare business line will focus on its growth areas: lipids for mRNA and gene therapy, drug delivery systems and cell culture components. The production of keto acids for pharmaceutical use in Hanau will be discontinued at the end of 2025. In recent years, the entire amino acid and keto acid business has averaged sales of around 100 million euros.

"Our amino acid and keto acid businesses in Ham and Wuming are developing strongly and have great potential," says Caspar Gammelin, head of the Nutrition & Care division. "We are therefore not considering closing these businesses. By investing in these sites, these businesses can reach their full potential and thrive. We are therefore investigating options such as partnerships or divestments to enable these businesses to thrive."

The Coating and Adhesive Resins business line is also developing along similar lines. In the future, this business line will focus on two core growth areas: liquid polybutadiene as an additive for adhesives and sealants or tires, and specialty acrylic resins for the medical technology and packaging industries.
The existing polyolefins business in this business line, with sales of around €100 million, will be transferred to Evonik's C4 chain business. The polyester business for coating and adhesive applications will be sold to the new owner. This business has an annual turnover of around €150 million.

"We have a lot of technological expertise in our polyester business," says Lauren Kjeldsen, head of the Smart Materials division. “But to succeed in global long-term competition and to generate the necessary profits, investments are needed – and other companies with polyester as their core business can achieve these goals better than we can.”

For Thomas Wessel, Chief Human Resources Officer and Labor Director at Evonik, one thing is clear: “Whether we transfer businesses to new owners or terminate them in individual cases, we always do so in a socially responsible manner and closely involve employee representatives. In addition, when divesting businesses, we have demonstrated: We choose our investors carefully and always keep the future of the company and the well-being of our employees in mind.”

Evonik CEO Christian Kullmann said: “The realignment of the two business lines embodies our approach. By focusing on our strengths, we can unlock growth potential within the company.”