20 Dec 2024
Merged unit, called ‘Smart effects’, to be created soon, according to German-based chemicals major
Essen, Germany – German chemicals supplier Evonik is bundling its two ‘silica and silanes business lines’ together to create a single unit under a major restructuring plan unveiled 13 Dec.
The new unit, called “Smart effects” will be created soon and will be part of the group’s “Advanced technologies” business segment, said Evonik in a 17 Dec statement to ERJ.
Evonik produces fumed silicas, fumed metal oxides and precipitated silicas under its silicas business line, for application in rubber, silicone rubber, adhesives, sealants and other industries.
Evonik’s silanes are used in various applications, including tires, mechanical rubber goods, adhesives and sealants as well as cables and pipes.
The German chemicals group announced plans to streamline its operations last week with the introduction of a new segment structure and “a significantly leaner” management model.
Under the new plan, the group business lines, which so far have been spread across four divisions, will now be divided into two segments, led directly by members of the executive board.
Currently, Evonik manages its businesses in the divisions speciality additives, nutrition & care, performance materials as well as smart materials which also includes the silica and silane units.
Effective 1 April 2025, the group will organise its business lines in two new segments: ‘custom solutions’ and ‘advanced technologies’ with annual sales of €6 billion each.
The advanced technologies businesses will be managed by Claudine Mollenkopf, currently head of the speciality additives division.
“Efficiency-driven and featuring a high level of technological expertise and operational excellence,” the businesses employ 8,000 in total and also include high performance polymers and hydrogen peroxide production.
The “innovation-driven” custom solutions businesses be led by Lauren Kjeldsen, currently head of the smart materials division, and will be operating in “specific niche market [with]… a strong customer proximity.”
To be focused on acquisitions, the segment will include additives for paints and coatings as well as products for the cosmetics and pharmaceutical industries, with 7,000 employees.
Evonik said the restructuring move 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.”
Kjeldsen and Mollenkopf will join the Evonik executive board on 1 April 2025 with Kjeldsen also taking responsibility for innovation and for the Americas region while Mollenkopf will be responsible for the region Asia-Pacific and for ‘operational excellence’.
Christian Kullmann, Maike Schuh, and Thomas Wessel will complete the board.
Evonik expects the two segments to “complement each other and play equally crucial roles” for the group’s value creation.
Custom solutions businesses are anticipated to play “a major role” as growth drivers and contribute more than average to adjusted earnings growth.
Advanced Technologies businesses are to play a stronger financing role and generate cash flow.
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