Evonik is putting in place a new segment structure and adopting a significantly leaner management model. The company’s business lines, which so far have been bundled into four divisions, will now be led directly by members of the Executive Board. Going forward, the operating businesses will be managed in a significantly more differentiated manner, divided into two segments.
Custom Solutions and Advanced Technologies
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Currently, Evonik manages its chemicals businesses in the growth divisions Specialty Additives, Nutrition & Care, and Smart Materials. Under the new structure, which will take effect on April 1, 2025, the Group will organize its business lines in two new segments: Custom Solutions and Advanced Technologies. This will allow for clearer strategic focus and resource allocation. It will also enable more differentiated management of the businesses according to their respective business models. The segments currently have annual sales of around €6 billion each.
The Custom Solutions businesses are defined by innovation-driven business models. They operate in specific niche markets, have a strong customer proximity, and develop customized solutions, allowing for pricing power. The focus for acquisitions rests on this segment with around 7,000 employees, which includes additives for paints and coatings as well as products for the cosmetics and pharmaceutical industries.
The Advanced Technologies businesses are efficiency-driven, featuring a high level of technological expertise and operational excellence. The segment, with approximately 8,000 employees, includes high performance polymers and hydrogen peroxide production, amongst others.
Lean management model
s the nucleus of the Group, the business lines are the focus of its entrepreneurial activities. The reorganization program “Evonik Tailor Made”, which runs until the end of 2026 and will significantly reduce costs in the long term, also follows this principle. After the completion of the planning phase, the first structural measures were already implemented this year. They will lead to faster decision-making and processes and drastically reduce bureaucracy. By the time the program is completed, Evonik will have reduced the number of management levels from an average of ten to a maximum of six across the group. At the same time, more than 3,000 organizational units will be eliminated.
This is reflected in the leaner management model that will be implemented with the new segment structure. With the elimination of the division management level, a complete layer in the operational business will be removed as of April 1, 2025. The business lines, bundled into the new segments, will then be managed directly by individual members of the Executive Board.
The Custom Solutions business lines will be led by Lauren Kjeldsen, an American citizen and currently head of the Smart Materials division. The Advanced Technologies business lines will be managed by Claudine Mollenkopf, a French national and currently head of the Specialty Additives division. Kjeldsen and Mollenkopf will be appointed to the Executive Board on April 1, 2025.
