Evonik New Company to Launch on January 1, 2025, with 3,500 Employees

On January 22, Evonik announced the strategic merger of its silica and silane business lines into a new company called Smart Effects, had be launched on January 1, 2025. This new entity will employ 3,500 individuals globally and will form part of Evonik's "Advanced Technologies" business unit, established following a large-scale reorganization.

Lauren Kjeldsen, president of Evonik’s Smart Materials Division, stated that the new line aims to enhance financing capabilities for its complementary silane, precipitated, and fumed silica technology platforms. By leveraging expertise in molecular silane chemistry and silica particle design, Smart Effects will provide differentiated solutions and tailored product offerings to add value for customers.

Smart Effects will target key markets including the automotive, tire, electronics, consumer health, and construction sectors. In the tire industry, the combination of silica and silane has proven successful, particularly in producing green tires that enhance fuel efficiency and safety. This integrated approach will continue to drive advancements in the joint application of silica and silane technologies.

In the electronics sector, Smart Effects will supply high-purity silica, metal oxides, and silanes essential for lithium-ion batteries, semiconductors, and displays, supporting the industry's green transformation. Additionally, Evonik has introduced innovative technologies such as new adsorbents for Direct Air Capture (DAC), utilizing surface-modified silica carriers and amino silanes to effectively remove carbon dioxide from the atmosphere.

These initiatives highlight Evonik's commitment to innovation and sustainability. Smart Effects will support customers in over 100 countries through local sales teams and regional tech centers, ensuring safe supply and exceptional delivery.

In a related announcement on January 23, Evonik revealed the establishment of a new joint venture with Fuhua Tongda Chemical Co., Ltd. in Leshan, Sichuan Province. The joint venture, named Evonik Fuhua New Materials (Sichuan) Co., Ltd., will focus on producing and selling hydrogen peroxide in China. Evonik will hold 51% of the shares, while Fuhua will hold 49%.

The joint venture will utilize Fuhua's industrial-grade hydrogen peroxide as a raw material to manufacture specialty hydrogen peroxide for applications in solar panels, semiconductors, and food packaging. The first products are expected to be available in the first half of 2026.

This joint venture is a continuation of a licensing agreement signed in November 2023, under which Evonik has licensed its industrial-grade hydrogen peroxide technology to Fuhua to initiate the construction of a 200,000-ton hydrogen peroxide super plant. The new company will process and purify hydrogen peroxide produced at this facility.

Notably, this hydrogen peroxide business also falls under the "Advanced Technologies" business unit of Evonik's new structure.

In December 2024, Evonik announced a major restructuring plan, aiming to streamline its operations and adopt a more efficient management model. The previously segmented four business divisions will now be directly led by executive board members. This transition is expected to impact up to 7,000 employees due to layoffs or divestitures.

Overall, these strategic moves reflect Evonik's focus on enhancing operational efficiency, innovation, and sustainability within its business framework.