Evonik is implementing a new segment structure and adopting a significantly leaner management model. The company’s business lines, previously grouped into four divisions, will now be led directly by members of the Executive Board. This approach will allow for more differentiated management, dividing operations into two segments: Custom Solutions and Advanced Technologies.
Evonik has strategically focused its portfolio on growth, resilience, and geostrategic balance in recent years. “We have significantly improved our portfolio’s quality,” said Christian Kullmann, chairman of the Executive Board. “In our current structure, focusing solely on specialty chemicals no longer differentiates us sufficiently. We will now manage Evonik more distinctly, leveraging two strengths: solutions and innovation-driven businesses, and technology and efficiency-driven businesses. Our new management model reflects this.”
Custom Solutions and Advanced Technologies
Starting April 1, 2025, Evonik’s chemicals businesses, currently under the Specialty Additives, Nutrition & Care, and Smart Materials divisions, will be organized into two new segments:
Custom Solutions: Focuses on innovation-driven, niche markets with strong customer proximity and customized solutions. This segment, comprising around 7,000 employees, includes additives for paints and coatings, and products for cosmetics and pharmaceuticals.
Advanced Technologies: Efficiency-driven businesses with technological expertise and operational excellence, positioning them as global cost leaders. The segment, with approximately 8,000 employees, includes high-performance polymers and hydrogen peroxide production.
Each segment generates about €6 billion in annual sales and plays a vital role in value creation. Custom Solutions drives growth and contributes significantly to adjusted EBITDA, while Advanced Technologies generates cash flow. The key performance indicator across all businesses is return on capital employed (ROCE). Evonik aims for over 50% of its products to be NextGen Solutions — those with sustainability benefits — by 2030.
Lean Management Model
The reorganization program “Evonik Tailor Made”, running through 2026, will streamline operations and reduce costs. Evonik plans to reduce management levels from 10 to six and eliminate over 3,000 organizational units. As of April 1, 2025, the division management layer will be removed, and business lines will be managed directly by Executive Board members.
Lauren Kjeldsen, currently head of Smart Materials, will lead Custom Solutions. Claudine Mollenkopf, currently head of Specialty Additives, will lead Advanced Technologies. Both will join the Executive Board.
“The new management team with Christian Kullmann, Lauren Kjeldsen, Claudine Mollenkopf, Maike Schuh, and Thomas Wessel will lead the Group into a bright future,” said Bernd Tönjes, chairman of the Supervisory Board. “Lauren and Claudine are experienced leaders, and their appointments were unanimous.”
Kullmann added, “Lauren and Claudine have been successful leaders, and I look forward to working with them. Together, we will make Evonik better.” Kjeldsen will oversee innovation and the Americas region. Mollenkopf will manage the Asia-Pacific region and operational excellence.
Thomas Wessel, chief human resources officer, will take on Infrastructure and NextGen Technologies. Harald Schwager, deputy chairman of the Executive Board, Johann-Caspar Gammelin, head of Nutrition & Care, and Joachim Dahm, head of Performance Materials, will retire.
“Harald Schwager has made lasting contributions, particularly to R&D,” said Tönjes. “Thomas Wessel will continue leading our transformation with integrity.” Kullmann praised Gammelin and Dahm for their leadership and thanked Schwager for his excellence in operational and innovation roles.
Source: pcimag.com
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