Evonik is reinstating operational divisions for its operations.
Evonik's Revamp: A Game-Changer Ahead
German chemical powerhouse Evonik is shaking things up, revealing its revamped corporate structure slated to kick off by April 2026. This bold move includes the merger of three current divisions – Specialty Additives, Nutrition & Care, and Smart Materials – into two new powerhouses, Custom Solutions and Advanced Technologies.
In an effort to boost its strategic focus and allocation of resources, Evonik's CEO, Christian Kullmann, anticipates a more agile and cost-efficient company that boasts a clearer direction. Remaining true to its word of organizational restructuring, Evonik had previously unveiled plans for a leaner, meaner corporate structure that features fewer management levels.
The Custom Solutions division will cater to niche markets, offering specialized products for industries such as paints, coatings, cosmetics, and pharmaceuticals. In contrast, the Advanced Technologies division is poised to dominate through lower production costs, featuring high-performance plastics and hydrogen peroxide. Each division is estimated to generate an annual revenue of approximately 6 billion euros.
At the helm of Custom Solutions stands Lauren Kjeldsen, the current leader of the Smart Materials division. Meanwhile, Claudine Mollenkopf, who oversees the Specialty Additives division, will lead the areas of Advanced Technologies. Both will join the board on April 1, 2026, bringing more gender diversity with the addition of three women and two men. Board members Harald Schwager and Johann-Caspar Gammelin will bid farewell.
To accomplish its reinvention, Evonik anticipates slashing up to 2,000 jobs, with 1,500 of those in Germany, by 2027. Potential savings amount to around 400 million euros annually following the completion of the program. Moreover, the company is contemplating the separation and potential joint ventures or sale of its service units at the Marl and Wesseling sites, which employ around 3,600 staff.
This ambitious restructuring effort is part of a three-step approach at Evonik: save, restructure, and grow. The company aims to reduce complexity by slashing hierarchical layers and consolidating multiple organizational units, thereby freeing up capital and management resources. Stay tuned for more details as this evolution unfolds.
In the context of Evonik's revamp, the Custom Solutions division, led by Lauren Kjeldsen, will focus on catering to niche markets in industries such as finance, business, and others like paints, coatings, cosmetics, and pharmaceuticals. Meanwhile, the Advanced Technologies division, headed by Claudine Mollenkopf, is anticipated to generate high revenue in the finance and business sectors through the production of high-performance plastics and hydrogen peroxide.
