NEWS
Evonik to change structure , cut jobs
During its 2023 results presentation , Evonik announced that it will establish a new organisational structure by the end of 2026 . Under ‘ Evonik Tailor Made ’, it will eliminate administrative activities that do not directly support its businesses and bundle key tasks in the new structure . As a result , about 2,000 jobs will be cut , 75 % of them in Germany , saving about € 400 million / year following completion in 2026 .
In 2023 , group sales were 17 % down to € 15.3 billion and EBITDA was € 1.66 billion . Volume sales fell by 8 % and selling prices by 3 %. There was a net loss of € 465 million “ due to exceptionally high impairments and burdens from structural measures ”. However the company achieved its 2023 savings target of € 250 million .
“ The many crises around the world have put a damper on our results ,” said Christian Kullmann , chairman of the executive board . “ Overall , we got away with a black eye … However , the general conditions will not get any easier , which is why we will continue our fundamental revamp of the group .”
Evonik does not expect an economic recovery during 2024 . For this reason , capital expenditures will be limited to around € 750 million . “ We must not delude ourselves , even if there are slight signs of a recovery . What we are currently experiencing are not cyclical fluctuations , but massive , consequential changes of our economic environment ,” Kullmann said .
All four divisions shared in the fall in sales . Specialty Additives was down by 16 % to € 3.52 billion , primarily due to lower volumes and negative currency effects , and adjusted EBITDA fell by 29 % to € 673 million .
Nutrition & Care saw sales fall by 15 % to € 3.61 billion , mainly due to lower prices in the Animal Nutrition business and negative currency effects . Adjusted EBITDA fell 43 % to € 389 million . The Health & Care business ’ s revenue declined due to lower volumes despite a slight improvement in prices , although active cosmetic ingredients performed well .
Sales in the Smart Materials division fell by 15 % to € 4.46 billion due to a big drop in demand and negative currency effects . Inorganic products had significantly lower sales because of declining demand in almost all market segments . Adjusted EBITDA decreased by 27 % to € 540 million .
Perhaps hardest hit was Performance Materials , which has been earmarked for sale . Sales fell by 22 % to € 2.55 billion , in part due to the mid-year divestment of the site in Lülsdorf and associated assets at Wesseling , Germany ,
Kullmann - General conditions will not improve in 2024
to ICIG but the business with products from the C 4 chain saw declining volumes and significantly lower prices . Adjusted EBITDA fell by 68 % to € 111 million .
Evonik simultaneously announced the sale of its superabsorbents business to ICIG for a price in the “ low triple-digit million euro range ”, marking the second step in the divestment of Performance Materials . This business had also seen a fall in sales in 2023 , due to lower demand from Europe . Completion is expected in mid-2024 , subject to employee consultation and regulatory approval .
ICIG is taking over the entire division with around 1,000 employees and facilities in Krefeld and Rheinmünster , Germany , Greensboro , North Carolina , and Garyville , Louisiana . It also includes plants at Marl that make the key raw material , acrylic acid . Kullmann commented that the business “ no longer fits our character as a speciality chemicals company ”. The business had sales of € 892 million in 2023 .
8 SPECIALITY CHEMICALS MAGAZINE ESTABLISHED 1981