Evonik Unveils Growth Strategy, Tailor-Made Plan Enters Second Phase

• Clarify the functional positioning of each business segment and the German local factory.
• Increase investment and optimize the balance of global geopolitical strategic layout.
• “Evonik Tailor-Made” Efficiency Program Creates Financial Flexibility

On September 23, Special Plastics View reported that Evonik will focus on all its business segments over the next three years to strengthen business growth. The company will streamline its business portfolio according to functional positioning and assign specific tasks to its major production sites in Germany. Meanwhile, it will strategically advance growth projects to improve the balance of its global geopolitical layout.

Evonik is creating financial room for the aforementioned investments through its “Evonik Tailor-Made” restructuring program, which aims to further reduce the group’s cost base. As part of this initiative, 3,200 positions will be cut globally, with approximately 2,150 of them located in Germany.

At the annual strategy meeting, Evonik’s Executive Board and Supervisory Board conducted a thorough discussion of the company’s roadmap through 2030. Interim CEO Klaus Rettig stated, “The Executive Board, Supervisory Board, and employee representatives have reached a consensus that the chemical industry is facing both structural and economic crises. We will seize this moment of multiple crises to overhaul our legacy structures and reposition the company. Even in this challenging environment, several of our business segments continue to grow. Therefore, we will focus our growth on areas where we hold competitive advantages, promising sectors, and high-return markets, while simultaneously optimizing our cost structure to create operational flexibility.”

Evonik’s comprehensive transformation efforts will continue to advance across all levels, strengthening its business portfolio through targeted investments in high-growth markets. For example, the company has alreadyHealthcare and Biotechnology SectorLaunch multiple growth projects, including the expansion of the GMP production base in Vancouver and the biotechnology capacity expansion project in Slovakia, with total investments reaching hundreds of millions of euros.

Each business unit will strictly complete adjustments in accordance with its own positioning, distinguishingGrowth-driven business Cash flow-generating businessand implement differentiated management. For example, the newly established business unit “Custom Polymer Solutions” is being formed, integrating businesses across multiple growth areas including aerospace, automotive, and gas separation (including biogas and hydrogen).

Evonik sees strong growth opportunities in the Asian and American markets and is currently evaluating the feasibility of additional investments in these regions. Leveraging its existing European production network centered on its German sites, the company aims to capitalize more quickly and fully on growth opportunities in Asia and the Americas. Evonik’s goal remains to achieve a balanced revenue distribution across Europe, Asia, and the Americas.

Evonik will define clear development profiles for each of its six core production sites in Germany, serving as guiding principles for their future development. The implementation of these measures will commence in the near future.

Meanwhile, Evonik will gradually exit internal businesses that lack promising prospects. Röttger stated, “Only by achieving industry leadership in our chosen sectors can we maintain a long-term position among the top tier of companies. The future market environment will remain volatile, requiring us to respond flexibly to short-term changes so as to remain a trusted partner for customers worldwide. Our industry positioning and innovation strength in multiple key technology areas of specialty chemicals provide us with a more solid foundation compared to our competitors.”

The previously announced plan to shut down small-scale production facilities is part of this strategic adjustment; the divestment of the two business segments, C4 chemicals (Oxeno GmbH) and infrastructure (Syneqt GmbH), is also proceeding as planned.

The “Evonik Tailor‑Made” efficiency program will enter its second implementation phase in 2027, spanning three years until 2029 and seamlessly following the first phase from 2024 to 2026.

The detailed measures, including freezing replacements for vacant positions, offering early retirement options, and providing severance packages to encourage voluntary resignations, will be finalized by the end of 2026. Thomas Wessel, Human Resources Director, stated, “Evonik has always upheld its social responsibility and maintained in-depth dialogue with employee representatives. This transformation also requires collaborative efforts from all parties to successfully achieve our transition goals.”