Evonik Pulls Out of Non-core Businesses, Including Polyolefin and Polyester Lines

Evonik, which in March announced it will cut 2,000 jobs by 2026, will now reorganize its two core businesses — coating and adhesive resins and healthcare — and seek to sell its remaining businesses, including its polyolefin and polyester lines.

More than 250 employees affected by Hanau plant shutdown

The Hanau, Germany, facility that produces keto acids for pharmaceutical applications will be shut down at the end of 2025, the company added. The approximately 260 employees affected will be actively supported in their search for new options in other businesses within Evonik or outside the group. Several strategic options reportedly are being considered for sites in Ham, France, and Wuming, China, that are active in the same business.

The company said the sale of its businesses outside its two primary cores will be done in a “socially responsible” manner in individual cases. The affected businesses, which generate $382 million in sales, could also be incorporated into partnerships.

Social responsibility

“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 of employee representatives,” said Thomas Wessel, Evonik’s chief human resources officer and labor director. “Also, when divesting businesses we have proven: We select investors carefully and always have the future of our company and the well-being of our employees firmly in mind.” 

Evonik’s coating and adhesive resins business will focus on liquid polybutadienes as additives for adhesives and sealants or tires, and specialty acrylics for medical technology and the packaging industry. The polyolefin business, with sales around $109 million, and polyester division, reporting sales around $163 million, meanwhile are on the selling block.

“The technological expertise of our polyester business is extensive,” said Lauren Kjeldsen, head of Evonik’s Smart Materials division. “But to be successfully competing in the long term globally and to generate the necessary margins, investments are needed, and other companies for which polyester is a core business can realize these better than we can.”

Evonik's polymer brands include Vestamid and Trogamid nylons, Vestakeep PEEK, Vestenamer plasticizers, and Rohacell structural foam.

Industry experiencing fundamental structural change

“Our industry is undergoing fundamental structural change worldwide,” explained 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.”