Evonik Consolidates Its Operations in Germany

Evonik plans to close two smaller German facilities by next year and consolidate their operations at larger sites in the country. The Hamburg facility, which employs around 50 people, supplies products to the cosmetics and personal care industry, while approximately 40 employees at the Bitterfeld site manufacture chlorosilanes. Both businesses will continue under the consolidated structure. Evonik will work with employee representatives over the coming months to develop socially responsible solutions for the affected workforce.

"We have strong businesses that successfully meet our customers' needs for high-quality products," says Claus Rettig, interim Chairman of the Executive Board of Evonik. "At the same time, our structures when it comes to production, administration, and laboratories are too fragmented in some areas. This leads to unnecessarily high costs and weakens our competitiveness. That's why we also need to bundle our locations and concentrate our structures in a targeted manner in order to work more efficiently, drive innovations forward more quickly, and thus strengthen our competitiveness."

Evonik plans to close its Hamburg facility by mid-next year and transfer its cosmetics and personal care operations, along with the site’s technical expertise, to the larger Essen-Goldschmidtstrasse facility. This move will ensure business continuity while consolidating activities at a key Care Solutions location. The restructuring comes as the business faces weak global demand, intense international competition and continued pressure on profit margins across the chemicals industry.

"We are aware that this decision represents a drastic change for the employees at the Hamburg site," says Maximilian Morin, who is responsible for the Care Solutions business line. "The decision was made after intensive evaluations of various options and represents the best solution for the successful development of the business."

Evonik plans to close its Bitterfeld facility at the end of April 2027 due to prolonged market challenges for high-purity silicon tetrachloride, including rising Asian supply and growing competitive pressure. The plant has also operated at low utilisation levels for an extended period, making continued production economically unsustainable. Evonik evaluated several alternatives—including new operating models, capacity reductions, mothballing and a potential sale—but concluded that none offered a viable long-term future for the site.

"This decision was not easy for us. We are aware of the importance of the site for our employees and for the region. At the same time, we have the responsibility to ensure the long-term competitiveness of our business," says Emmanuel Auer, head of the Smart Effects business line, which the chlorosilane business is part of. Going forward, Evonik ensures the supply of customers primarily through deliveries from its Rheinfelden site in southern Germany.

Together with employee representatives in Hamburg and Bitterfeld, the next steps will now be discussed. "For us, dealing with our colleagues at Evonik in a responsible way is our top priority, even when difficult decisions have to be taken," says Hussin EL Moussaoui, Chairman of the General Works Council. "That's why it is important for us to communicate the necessary changes transparently at an early stage. This creates clarity and gives us the necessary time to work together toward viable and socially acceptable solutions for all affected.

Source: Evonik