“In the past we’ve worked for our customers in parallel across these complementary business lines —the reorganization means that our customers can expect more innovative products, leaner processes, and much closer customer relationships,” said Boinowitz.
The four global product lines of Cosmetic Solutions, Active Ingredients, Cleaning Solutions, and Technical Applications will all benefit by having a much clearer focus on specialty products that differ significantly from each other, according to Evonik. Dedicated application technology groups will ensure that the industrial focus will be retained. The fifth product Line, Base Ingredients, will bundle products together where value and cost is crucial. Together the five product lines will serve the following markets: hair and skin care, sun care, bath and shower, color cosmetics, age defying, fabric care, deodorants, liquid laundry detergents, industrial and institutional cleaning, and mining and drilling fluids.
This reorganization, said the company, will allow Evonik to realize increased synergies leading to more efficient processes, a leaner organization, and improved interface management. As a result of merging the two business lines, Evonik will be ending its involvement in Milton Keynes (UK) site in 2019 and Granollers (Spain) in 2020. In addition, the Care Solutions Business Line will be withdrawing from German sites in Hanau and Schlüchtern.
In order to best serve customers throughout the world, the focus at Care Solutions will be even more global. Three of the five product lines will be managed from the US, while future production at Care Solutions will be carried out at the following global sites:
• Germany: Essen, Duisburg, and Steinau;
• Americas: Mapleton, Janesville/Milton, Reserve, and Hopewell (all in the US), and Americana (Brazil); and
• Asia: Shanghai (China) and Bekasi Timur (Indonesia).
“The new Business Line Care Solution will further strengthen the growth agenda of the segment Nutrition & Care,” said Dr. Hans-Josef Ritzert, member of the board of management of the nutrition and care segment.