Evonik Announced the Discontinuation of Polyester Business Until 2029

Evonik will implement further structural and cost-cutting measures in the coming years to drive forward the company’s transformation.

"The global political situation remains uncertain, and economic growth is persistently weak. At the same time, international competition is becoming increasingly fierce," says Chief Executive Officer Christian Kullmann

All business and administrative units worldwide are impacted by the measures that the Executive Board and employee representatives have agreed upon. The company will eliminate a total of 3,200 positions, including 2,150 in Germany. This measure will be implemented from 2027 to the conclusion of 2029. Evonik perceives substantial potential for these changes through outsourcing, digitalisation, and increased efficiency. Evonik intends to eliminate approximately 2,800 positions from October 2023 to the conclusion of 2026 as part of the ongoing "Evonik Tailor Made" Group program and efficiency initiatives in its operating businesses.

In the Custom Solutions segment, Evonik will also discontinue its global polyester business in 2027. This affects sites in Witten and Marl, Germany, as well as Shanghai, China.

"Ending the polyester business and closing production is an economically unavoidable step," says Lauren Kjeldsen, who is responsible for the segment on the Executive Board. "Global competitive pressure, structural disadvantages in Europe, and declining market dynamics mean that none of the alternatives examined would have been economically viable for Evonik in the long term."

The polyester business generates annual revenues of around 150 million euros but has not been profitable for years. The site in Witten, which employs 266 people, will be closed in 2027. In Marl, 45 jobs will be cut, while 35 positions will be eliminated at the production plant in Shanghai, China.

Source: Evonik