Evonik Industries is refocusing its Coating & Adhesive Resins division to concentrate on high-growth areas such as liquid polybutadienes and specialty acrylics. By divesting non-core businesses, the company aims to strengthen its position in the coatings market and drive targeted investments. The following company statement provides more details on these strategic moves. The company released the following announcement:

Evonik is reorganizing two business lines to strengthen their growth prospects. The Coating & Adhesive Resins and Health Care divisions will focus on concentrating future investments in their core businesses. Businesses outside these areas will be sold to new owners or incorporated into partnerships. In some cases, businesses may be discontinued in a socially responsible manner. The businesses affected by these changes generate about €350 million in sales.

"Our industry is undergoing fundamental structural change worldwide," said Christian Kullmann, chairman of Evonik’s executive board. "We will align all our resources with our strongest businesses. Only then can we seize growth opportunities in these markets at the necessary speed. Conversely, this also means that for businesses where we cannot offer appropriate prospects at Evonik, we will implement solutions outside Evonik."

The Health Care division will focus on growth areas such as lipids for mRNA and gene therapies, drug delivery systems, and cell culture ingredients. Production of keto acids for pharmaceutical applications in Hanau will be discontinued by the end of 2025. The approximately 260 employees affected will be supported in their search for new opportunities, either within Evonik or externally. For the sites in Ham, France, and Wuming, China, which are active in the same business, several strategic options are being evaluated. The amino and keto acids business has generated an average of about €100 million in sales in recent years.

“Our amino and keto acids businesses in Ham and Wuming are strong and offer great potential," said Caspar Gammelin, head of the Nutrition & Care division. "We are not considering closing them. With investments, these sites could reach their full potential. We are examining options such as partnerships or divestments that would allow the businesses to prosper."

The Coating & Adhesive Resins division will be developed in a similar manner. In the future, it will focus on two core growth areas: liquid polybutadienes as additives for adhesives, sealants, or tires, and specialty acrylics for medical technology and the packaging industry. The division’s existing polyolefins business, with sales of about €100 million, will be transferred to Evonik’s C4 chain business. This move will better utilize the advantages of the supplier relationships between the two units, which are based in Marl, Germany. The polyester business for coating and adhesive applications will be sold to new owners. The polyester business has about 330 employees globally, with 250 located at its largest site in Witten, Germany, and 30 employees at a smaller plant in Shanghai. The business has an annual turnover of about €150 million.

"The technological expertise of our polyester business is extensive," said Lauren Kjeldsen, head of the Smart Materials division. "But to compete successfully in the long term and generate the necessary margins, investments are needed. Other companies for which polyester is a core business can realize these investments better than we can." The search for interested parties will begin later this year.

Thomas Wessel, chief human resources officer and labor director at Evonik, emphasized, "Whether we transfer businesses to new owners or discontinue them in individual cases, we always do so in a socially responsible manner, with close involvement from employee representatives. When divesting businesses, we carefully select investors to ensure the future of the company and the well-being of our employees."

Kullmann added, "The realignment of these two business lines exemplifies our approach. By concentrating on our strengths, we can unlock the growth potential within our company."