Evonik Takes Major Steps: Closing Two U.S. Silica Production Sites by 2026

Evonik Industries has recently announced a strategic decision to shut down two of its silica production facilities located in Watervliet, New York and Aberfeldy, Maryland. The closures are set to occur in mid-2025 and mid-2026, respectively. This move is part of Evonik's initiative to optimize its production network, aiming to enhance efficiency, reduce costs, and strengthen its global competitiveness.

According to Emmanuel Auer, the global head of Evonik's Smart Effects business line, the decision is largely driven by structural changes across various industries. To adapt to these shifts, Evonik plans to focus on achieving economies of scale and fostering closer integration with partners. Auer emphasized that while the closure of these facilities will impact some employees, the company is committed to ensuring that customer supply remains uninterrupted. Affected silica products will be manufactured at Evonik's other plants to guarantee reliable delivery.

The shutdown will affect 24 employees in Watervliet and 42 production staff in Aberfeldy. Evonik has committed to providing affected workers with opportunities for relocation to other sites or support for career transition. However, the research facility in Aberfeldy will remain operational, continuing to drive innovation.

Notably, Evonik had already announced a global layoff plan last March, anticipating the elimination of 2,000 jobs by 2026, including 1,500 in Germany. This restructuring is expected to result in annual savings of €400 million (approximately ¥312.5 billion). Evonik's CEO Christian Kullmann stated during a recent earnings call, "We must prepare for the ongoing economic storm in the global market."