Evonik To Close Hamburg And Bitterfeld Plants In Germany, Consolidate Operations

Evonik Industries announced on September 11 that it plans to close two production sites in Germany—Hamburg and Bitterfeld—next year, affecting 50 and 40 employees, respectively. The Hamburg site primarily supplies products for the cosmetics and personal care industries, while the Bitterfeld site produces chlorosilanes. Evonik stated that these business operations will not be discontinued but will instead be consolidated into larger production facilities in Germany.

Our production, administrative, and laboratory facilities in certain areas are overly fragmented, resulting in unnecessary high costs and undermining our competitiveness. Therefore, we need to consolidate our production bases and strategically centralize our business structure to enhance operational efficiency, accelerate innovation, and thereby strengthen our competitive edge.

Evonik has announced that its Hamburg site will be shut down by the middle of next year. The cosmetics and personal care business, along with its accumulated technical patents, will be integrated into Evonik’s larger Essen-Goldschmidtstraße site.

Evonik states that Essen is already a core site for its Care Solutions business segment, with the Hamburg site also belonging to this division. Like other segments of the chemical industry, this business is facing weak global demand alongside persistent margin pressure from international competition.

Maximilian Mohring, Head of Evonik’s Care Solutions business, stated: “We recognize that this decision represents a significant change for the employees at our Hamburg site. This decision was made after a thorough evaluation of various options and is the optimal choice to ensure the sound development of our business.”

The Bitterfeld site is scheduled to shut down at the end of April 2027. Evonik has stated that it will primarily rely on its Rheinfelden site in southern Germany to ensure customer supply.

The company stated that the high-purity silicon tetrachloride market has long faced challenges, with increasing supply from Asia intensifying industry competition. Meanwhile, the facility’s operating rate has remained low for an extended period, preventing economically viable operations.

The enterprise has evaluated multiple alternative scenarios, including adjusting the operating model, reducing production capacity, idling facilities, and selling the base; however, none of these options can ensure long-term sustainable economic viability.

Emmanuel Orr, Head of Evonik’s Smart Effects business segment, stated, “We recognize the importance of this site to our employees and the local region. At the same time, we are committed to ensuring the long-term competitiveness of our business.”

Evonik previously announced plans to cut approximately 3,200 additional jobs between 2027 and 2029 and to exit its polyester business in 2027.