“[It] no longer sufficiently differentiates us in the eyes of our customers and the capital markets,” he said. “Going forward, we will manage Evonik in a more differentiated manner by leveraging the strengths of our two pillars: solutions and innovation-driven businesses on the one hand, and technology and efficiency-driven businesses on the other. Our new management model takes this approach into account.”
The two new segments, Custom Solutions and Advanced Technologies, will be implemented on 1 April 2025. The company believes this will allow for clearer strategic focus and resource allocation, and enable more differentiated management of the businesses. Both segments have annual sales of about €6bn.
“Custom Solutions businesses play a major role as growth drivers and contribute more than average to adjusted EBITDA growth,” the company said. “Advanced Technologies businesses play a stronger financing role and generate cash flow.”
Custom Solutions includes its additives business, including those for polyurethanes, as well as cosmetic and pharmaceutical ingredients. This will be led by Lauren Kjeldsen, who currently heads up the smart materials business. Operations within Advanced Technologies include high performance polymers, and this part of the business will be led by Claudine Mollenkopf, who currently runs the specialty additives division.
Both will join the executive board. Kjeldsen will also take responsibility for innovation and the Americas region on the board, and Mollenkopf the Asia-Pacific region plus the company’s operational excellence programme for continuous process improvement in its plants.
The company said the Evonik Tailor Made programme will continue until the end of 2026, with the aim of reducing costs in the long term. The first structural measures have already been implemented, and this should lead to faster decision-making and processes, and less bureaucracy, it said. Ultimately, the number of management levels across the company will reduce from an average of 10 to a maximum of six, with more than 3000 organisational units being eliminated.
