Page 166 - CW E-Magazine (10-10-2023)

News from Abroad

BUSINESS REALIGNMENT

Evonik to split its Technology & Infrastructure division

into two units

Germany’s Evonik is realigning two the infrastructure activities at the three
major units to focus its resources even sites, Evonik will examine, without
more intently on the operating busi- prejudging the possible outcomes,
nesses of its three growth divisions. which individual model will offer the
The Technology & Infrastructure (TI) best financing options for each site.
division will be split into two units, These include fully remaining within
each with different perspectives. In the Group, partnership and joint ven-
addition, the entire administration will ture models, or a divestment. This step
be tailored to the needs of the operat- will allow the sites to further build on
ing businesses, following an extensive their strengths and implement future
analysis. investments. Evonik remains committed
“We are literally building Evonik’s that TI will be part of the Group until
“We have made great strides in future here. That’s why process tech- mid-2027.
transforming our portfolio toward spe- nology and engineering activities will
ciality chemicals in recent years,” said be bundled globally and independent of By the end of 2024, the reorgani-
Mr. Christian Kullmann, the company’s their location to become separate units sation into cross-site technology and
Chief Executive Officer. “Now we have within TI,” emphasised Mr. Kullmann. site-specific infrastructure activities
to set up our infrastructure activities will be completed. In the second half
and our administration in a way that Infrastructure activities such as of 2025, the infrastructure units at the
allows us to fully focus on what really logistics, technical service, repair shops Marl, Wesseling, and Antwerp sites
differentiates Evonik from the competi- and security services are site-specific. will become legally independent.
tion: our operating businesses and their In line with this development, the infra-
innovative strength, customer proximity, structure units at the three sites in Marl Administration revamp
and sustainability,” he added. and Wesseling, Germany, and Antwerp, In parallel, Evonik is also reorganis-
Belgium, will become independent ing its administration. The programme
The company plans to split TI into companies by the end of 2025. Man- “Evonik Tailor Made” will launch on
cross-site technology and site-specific aged locally as profit centres, they will October 1. In its first phase, the current
infrastructure activities. This separa- be able to reduce complexity, develop structures will be analysed compre-
tion will enable a more differentiated their individual strategies, and generate hensively. In a second phase next year,
management of the respective services, value. significantly leaner structures will be
reduce TI’s complexity, and better meet designed and implemented.
the distinct requirements of the techno- As independent companies with
logy and infrastructure activities. entrepreneurial autonomy, each indivi- “Evonik has a very large number of
dual site will have a greater scope for organisational units, a comparatively
“The technology units possess its own strategic development. small management span and com-
unique specialist expertise in process plicated matrix structures. That’s too
technology, engineering, strategic “In the future, Evonik will focus on complex and too expensive. So, we will
energy management, and digitalisation investing in the operating businesses sketch the administration on a clean
of production. This is where Evonik of specialty chemicals. Every euro we sheet of paper and tailor it to focus on
differentiates itself from the competi- invest in research and development and serving our operating businesses,” said
tion as a speciality chemicals company, in our growth businesses will strengthen Mr. Kullmann.
as these units make important contribu- not only our operating businesses but
tions to meeting ambitious innovation also our sites,” said Mr. Kullmann. The restructuring will start in
and sustainability targets,” the company 2024. The process will be completed
said. Following the legal separation of in 2026.

166 Chemical Weekly October 10, 2023

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