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Evonik to Reduce Size of Executive Board and Streamline


Executive Board to be reduced from six to four members

The Supervisory Board of Evonik Industries AG unanimously passed resolutions relating to the successful focusing of the Group on specialty chemicals and its future growth targets. Over the past five years Evonik has been restructured from an integrated conglomerate to a listed specialty chemicals company.

Following the refocusing of the business, the next step is to consolidate management and administrative processes. Within the Executive Board, operational responsibility for the entire specialty chemicals business will therefore be transferred to Patrik Wohlhauser as of Jan. 1, 2014. Dr. Thomas Haeberle and Dr. Dahai Yu will be leaving the company by amicable and mutual agreement effective Dec. 31, 2013.

"The reorganization of Evonik as a listed specialty chemicals company would not have been possible without the full commitment of Dr. Haeberle and Dr. Yu,” said Dr. Werner Müller, chairman of the Supervisory Board of Evonik Industries AG. “They contributed many years’ experience of the operational side of Evonik's chemical business to the Executive Board and played a key role in shaping the successful repositioning of the Group. On behalf of the entire Supervisory Board, I would like to take this opportunity to thank Dr. Haeberle and Dr. Yu for their outstanding achievements."

Further, Evonik's Supervisory Board unanimously welcomed the Executive Board's decision to undertake extensive streamlining of Group-wide administrative structures. In many respects, the present administrative functions still reflect the needs of Evonik's former structure as a conglomerate. Administrative expenses are now approximately 26% higher than they were in 2008. Evonik therefore intends to extend the progress made in the operating units through the On Track and On Track 2.0 efficiency enhancement programs to its administrative organization. The goal is to make cost savings of up to €250 million a year by the end of 2016.

"We want to create an administrative organization that has a common stamp worldwide, without duplication of responsibilities on the one hand and unacceptable additional workloads on the other,” Dr. Klaus Engel, chairman of Evonik's Executive Board, said. “To achieve this, we will be reviewing all administrative workflows and systematically identifying scope for improvement. Creating a more efficient Group-wide administrative organization will also make us faster and more agile in the marketplace."

"We will be keeping a critical eye on the administrative restructuring announced by the company, particularly to ensure that good administration is not misunderstood as meaning minimizing costs and maximizing workloads,” Ralf Hermann, chairman of Evonik's Central Works Council, said. “Restructuring the administrative organization in collaboration with us will only be possible if good working conditions are provided for our colleagues."

"Throughout the process, we will work as in the past: with decency and respect for people, and in close collaboration with representatives of the workforce," Dr. Engel added.