NEWS
New segment-based structure for Evonik
Evonik has revealed that it is putting a new segment structure in place and adopting a “ significantly leaner ” management model . The business lines , bundled until now into four divisions , will be led directly by members of the executive board and the operating businesses will be divided into two segments .
“ In our current structure , it is no longer sufficient to solely focus on the criterion of speciality chemicals to drive the company forward ,” said executive board chairman Christian Kullmann . “ Its meaning has been completely blurred and no longer sufficiently differentiates us in the eyes of our customers and the capital markets .”
The two segments , each with around € 6 billion / year in sales , will come into place on 1 April 2025 . They are :
• Custom Solutions , including additives for paint and coatings , plus cosmetic and pharmaceutical products . These businesses are defined by innovation-driven business models , and operate in specific niche markets , with strong customer proximity . This segment will be the main focus for acquisitions
• Advanced Technologies , which are efficiency-driven , featuring a high level of technological expertise and operational excellence , while leading on cost . They include high performance polymers and hydrogen peroxide production , among others “ The two segments ideally complement each other and play equally crucial roles for the group ’ s value creation ,” Evonik stated . “ Custom Solutions businesses play a major role as growth drivers and contribute more than average to adjusted EBITDA growth . Advanced Technologies businesses play a stronger financing role and generate cash flow .”
Lauren Kjeldsen , currently head of the Smart Materials division , will lead Custom Solutions , while Advanced Solutions will be under Claudine Mollenkopf , head of the Specialty Additives division . Both will also join the executive board , with additional responsibility for innovation and for the Americas region , and for Asia- Pacific and operational excellence , respectively .
In addition , under the ‘ Evonik Tailor Made ’ reorganisation programme , which is already being rolled out and will
Kullmann - Speciality chemicals alone not enough
run until the end of 2026 , the business lines will become the focus of the group ’ s entrepreneurial activities . Evonik expects this to facilitate faster decision-making and processes and “ drastically ” less bureaucracy , with the number of management levels falling from an average of ten to a maximum of six and more than 3,000 organisational units eliminated .
Eternis acquires Sharon PC
Eternis Fine Chemicals , the Italian subsidiary of an Indian aroma chemicals business , has acquired Sharon Personal Care , taking it into the personal care sector for the first time . Sharon brings innovation labs and manufacturing capabilities in Italy and Israel , plus distribution sites in the US , Italy , Germany and France .
Sharon PC will plug into the Eternis model , with the two business units continuing to supply their distinct but adjacent markets . It will
6 SPECIALITY CHEMICALS MAGAZINE ESTABLISHED 1981