Evonik Restructuring: Two Divisions, €6 Billion New Strategy

On December 13, Evonik Industries, a leading German specialty chemicals company, announced a major organizational restructuring plan. The initiative involves consolidating business lines previously spread across four business divisions, with each now being led directly by members of the executive board. The operational units will be reorganized into two business divisions to facilitate more refined management strategies.

Christian Kullmann, Chairman of Evonik Industries, stated: “Over the past few years, we have significantly enhanced the quality of our product portfolio. However, within our current organizational structure, focusing solely on specialty chemicals is no longer enough to drive sustained growth. The definition of specialty chemicals has blurred, making it challenging to stand out with customers and in capital markets. Looking forward, we will achieve greater differentiation by strengthening two core pillars: solution and innovation-driven businesses, and technology and efficiency-driven businesses.”

Currently, Evonik manages its chemical operations through three growth-oriented divisions: Specialty Additives, Nutrition & Care, and Smart Materials. Under the restructuring plan, these business lines will be integrated into two new business divisions: Customized Solutions and Advanced Technologies. This transformation is expected to take effect on April 1, 2025, with both new divisions projected to generate annual sales of approximately €6 billion each.

Additionally, Evonik plans to streamline its management structure, placing business lines directly under the new divisions, supervised by executive board members. This restructuring initiative, expected to continue until the end of 2026, aims to significantly reduce operational costs in the long term.

Evonik operates in over 100 countries worldwide. In the 2023 fiscal year, the company achieved €15.3 billion in sales and an adjusted EBITDA of €1.66 billion, employing more than 33,000 people globally.