Evonik introduces new management model for ‘leaner’ operations

Essen, Germany – German chemicals supplier Evonik is streamlining its operations, putting in place a new segment structure and adopting a significantly leaner management model.

The company’s business lines, which so far have been bundled into four divisions, will now be divided into two segments, led directly by members of the executive board, Evonik announced 13 Dec.

Currently, Evonik manages its chemicals businesses in the divisions: speciality additives, nutrition & care, performance materials as well as smart materials which also include the silica/silane production with applications in the tire industry.

Under the new structure, to take effect on 1 April 2025, the group will organise its business lines in the new segments: ‘custom solutions’ and ‘advanced technologies’ with annual sales of around €6 billion each.

The 'custom solutions' businesses, Evonik explained, are defined by “innovation-driven business models”, operating in “specific niche markets, have a strong customer proximity, and develop customised solutions, allowing for pricing power.”

With 7,000 employees, the segment will be focused on acquisitions and will include additives for paints and coatings as well as products for the cosmetics and pharmaceutical industries.

The 'advanced technologies' businesses are “efficiency-driven, featuring a high level of technological expertise and operational excellence.”

With 8,000 employees, the segment includes high performance polymers and hydrogen peroxide production.

The move, according to Evonik, will allow for “clearer strategic focus and resource allocation.”

“In our current structure, it is no longer sufficient to solely focus on the criterion of speciality chemicals to drive the company forward,” said Christian Kullmann, chairman of the executive board.

The meaning of 'speciality', Kullmann explained, has been “completely blurred and no longer sufficiently differentiates us in the eyes of our customers.”

The ‘custom solutions’ business lines will be led by Lauren Kjeldsen, currently head of the smart materials division.

The ‘advanced technologies’ business lines will be managed by Claudine Mollenkopf, currently head of the speciality additives division.

Kjeldsen and Mollenkopf will join the executive board on 1 April 2025 with Kjeldsen also taking responsibility for innovation and for the Americas region.

Meanwhile, Mollenkopf will be responsible for the region Asia-Pacific and for ‘operational excellence’.

Evonik expects the two segments to “complement each other and play equally crucial roles” for the group’s value creation.