Evonik production site closures and major restructuring

Chemical company Evonik has announced plans to close two production sites in Germany by mid-2027. The Bitterfeld facility, which produces chlorosilanes and high-purity silicon tetrachloride for microchips and fiber optic cables, is scheduled to shut down by the end of April 2027, affecting approximately 40 employees. Additionally, a smaller site in Hamburg producing goods for the cosmetics and personal care industries will close, impacting about 50 employees. Evonik attributed these decisions to difficult market conditions, insufficient plant utilization, and increasing competition from Asia. The company intends to consolidate these business activities at larger, more efficient German production sites, such as Essen and Rheinfelden. These closures occur amid a broader crisis in the German chemical industry. Industry associations have warned of a potential “domino effect” in the Central German Chemical Triangle, a region containing roughly 100 companies and 10,000 employees, following recent insolvency filings by Domo Chemicals subsidiaries and announced closures by Dow. In a significant expansion of its restructuring efforts, Evonik has launched the ‘Evonik Tailor Made’ program, which includes cutting 3,200 jobs globally. This follows previous reductions of 2,800 positions scheduled through 2026. Approximately 2,150 of these new job cuts are expected to occur in Germany. Interim CEO Klaus Rettig stated that the company is utilizing the current structural and economic crisis in the chemical industry to “eliminate outdated structures and increase efficiency.” The restructuring aims to optimize geostrategic balance by shifting investments toward Asia and the Americas. Recent developments indicate the scale of restructuring may be even larger than previously reported. Interim CEO Klaus Rettig has stated the company aims to reduce its workforce by approximately 10,000 positions over the coming years through plant closures, job cuts, and divestments. If realized, Evonik’s headcount could drop from roughly 31,000 to approximately 20,000.