Evonik progresses C4 business divestment, steps up restructuring

Essen, Germany – Evonik Industries AG is pressing ahead with the planned divestment of its C4 chemicals business as part of a wider strategy to sharpen the group's portfolio and cut costs.

In its annual strategy meeting 22 Sept, the German speciality chemicals group said the divestments of its C4 chemicals and infrastructure businesses, Oxeno and Syneqt GmbH respectively, were “progressing as planned”.

Evonik previously earmarked Oxeno for sale as part of the restructuring of its former Performance Materials activities. (ERJ report)

Oxeno operates two C4 production facilities in Marl, Germany, and Antwerp, Belgium, according to Evonik.

Its portfolio includes 1,3-butadiene, 1,2-butadiene, and isobutene, which could I be used as raw materials in the production of synthetic rubbers.

The business also produces butene-1, fuel components including MTBE, oxo alcohols and plasticisers.

The planned disposal forms part of a broader transformation at Evonik as the group responds to difficult conditions facing Europe's chemicals industry. 

“We are in a structural and economic crisis in our industry,” said interim CEO Claus Rettig following Evonik's annual strategy meeting 22 Sept.

“We will use this polycrisis to change old structures and position ourselves better,” he added.

Evonik said it would concentrate investment on businesses designated as growth drivers while other operations would be managed as cash generators.

The group noted particular opportunities in Asia and the Americas and said it was examining further investments in the two regions.

“Growth opportunities in Asia and America are also to be exploited more quickly and consistently from the existing European production network, which mainly consists of the German sites,” Evonik said.

At the same time, the group said it was defining specific future roles for its six major German production sites and withdrawing from activities, “for which there are no prospects within the company.”

Evonik did not provide further details about plans for the German sites but said previously announce plant closures form part of the measures.

Initially launched in 2024, the “Evonik Tailor Made” aimed to reduce administrative costs within the organisation and create a 'leander organisation'. (ERJ report)

In its latest update, Evonik said the programme would involve 3,200 job cuts worldwide, up from 2,000 initially announced, including around 2,150 in Germany.

A second phase of the programme will run from 2027 through 2029, with detailed measures due to be completed by the end of this year.