The Logic Behind Evonik’s Suspension of M&A: Strategic Transformation of a Global Chemical Giant

■ #Industrial_and_Eco-Friendly_Materials Domain PeroxyChem (2020): A U.S. company producing environmentally friendly oxidants such as hydrogen peroxide and peracetic acid, applied in water treatment and food safety—strengthening Evonik’s position in the sustainable chemicals market; Air Products’ Specialty Additives Business (2017): A U.S. company offering diverse specialty additives widely used in coatings, adhesives, and construction materials—enhancing Evonik’s competitiveness in the high-performance materials market; ... These strategic acquisitions significantly strengthened Evonik’s technological and product capabilities in biotechnology, sustainability, and high-performance materials, accelerating its transition toward becoming a system solutions provider. However, amid current market uncertainties and economic challenges, Evonik has decided to suspend new M&A activities and instead focus on integrating and optimizing internal resources. Concurrently with this suspension, Evonik has accelerated the divestiture of non-core businesses—e.g., in August 2024, it sold its superabsorbent polymers business to ICIG Group. Additionally, the company announced restructuring plans for its #Pharma_Health and #Specialty_Polymers business lines, concentrating on areas with greater growth potential. Under Evonik’s 'Evonik Tailor Made' initiative launched in 2023, the company is comprehensively adjusting its organizational structure and implementing a three-pronged strategy: cost reduction, business restructuring, and growth acceleration. By flattening management layers and speeding up decision-making, Evonik aims to achieve organizational leanization. Up to 2,000 positions globally are expected to be cut—approximately 1,500 in Germany—with annual cost savings projected to reach nearly €400 million by 2026. 02 Strategic Transformation and Upgrading: Three Core Areas Driving Future Growth Evonik’s new strategy explicitly identifies bio-based solutions, energy transition, and circular economy as the three core drivers of future growth. Evonik’s Resource Allocation and Value Contribution in 2024 The company aims to generate an additional €1.5 billion in sales through products and solutions from these areas by 2032: ■ #Bio-Based Solutions Evonik has commissioned the world’s first large-scale rhamnolipid production plant in Slovakia, expanding its application of natural surfactants; ■ Energy Transition Solutions Evonik has expanded its gas separation membrane production facility in Austria to support low-carbon technologies such as CO₂ capture and hydrogen production; the company has signed wind power procurement agreements, aiming for over half of its externally purchased electricity to come from renewable sources starting in 2026—and achieving 100% green electricity procurement by 2030; ■ Circular Economy Solutions Evonik optimizes the reuse of polyurethane and rubber via catalyst recovery technologies, promoting closed-loop material utilization. Furthermore, Evonik invested in building North America’s first ultra-high-purity colloidal silica plant in Michigan, supporting the semiconductor industry. 03 The Deeper Logic Behind Evonik’s Strategic Transformation Evonik’s suspension of M&A and shift toward internal restructuring and sustainable growth reflect a broader, trend-setting transformation across the global specialty chemicals industry. ■ Industry Perspective: Entering a Phase of Deep Adjustment The specialty chemicals industry is transitioning from a high-growth, high-M&A-frequency phase into a 'rebalancing period' characterized by slower growth and intensified resource integration.

2026 Global Top 50 Chemical Companies Released!

In April 2026, Hengli Petrochemical became embroiled in a dispute with the U.S. government, which imposed sanctions on the Chinese enterprise over allegations that it purchased 'billions of dollars' worth of oil from Iran. Hengli Petrochemical operates a large integrated refining and petrochemical complex in Dalian, China, and denies these allegations. As one of China’s rapidly growing private chemical enterprises in recent years, Hengli is currently advancing multiple projects—including a $1-billion, 600,000-ton-per-year butanediol plant and several polyester film expansion initiatives. The company has also been committed to improving operational efficiency: its subsidiary Hengli Refining & Chemical continues implementing 114 technical upgrading projects annually, yielding over $100 million in annual savings. 19. Shin-Etsu Chemical 2025 Chemical Sales: $17.2 billion Following the massive investment wave spanning the 2010s to early 2020s, most newly built petrochemical projects in the United States have largely stalled. Yet Shin-Etsu Chemical’s U.S.-based vinyl chloride subsidiary, Shintech, remained undeterred: earlier in 2026, it announced a $3.4-billion plan to construct an ethylene cracker, along with chlor-alkali and vinyl chloride monomer (VCM) facilities in Plaquemines Parish, Louisiana. This project aims to achieve backward integration for Shintech’s existing polyvinyl chloride (PVC) production—Shintech had already expanded its PVC capacity in 2024. Shintech expects to complete the project by 2030, potentially aligning with a U.S. housing market recovery—a key demand driver for pipes and other PVC-containing construction materials. 20. Evonik Industries AG 2025 Chemical Sales: $15.9 billion Evonik Industries AG posted weak results last year, with sales down 7.2% and profits declining 4.5%. To reverse this trend, the company plans to cut another 3,200 jobs by the end of 2029—approximately 10% of its total workforce—and shut down its polyester business. In the longer term, Evonik is preparing for organic growth: it is investing $94 million in its bio-fermentation plant in Slovakia, which produces biopolymers, proteins, and small molecules. Last year, Evonik commissioned a production line in Slovakia using a process developed by startup AMSilk to manufacture silk protein. 21. Yara 2025 Chemical Sales: $15.6 billion This Norwegian fertilizer producer delivered strong performance in 2025, propelling its ranking in the Global Top 50 from 28th to 21st. Tightened market supply drove urea prices higher, resulting in a 12.7% increase in Yara’s sales and more than doubling its profits. Despite favorable market conditions, Yara and BASF jointly canceled their planned low-carbon ammonia plant on the U.S. Gulf Coast. The blue ammonia project—originally announced in 2023—was intended to produce fertilizer from natural gas while capturing and storing associated CO₂ emissions. Its planned annual capacity was 1.4 million tons. Yara still has alternatives. It is partnering with Enbridge to launch a 2.8-million-ton-per-year blue ammonia project in Texas, USA.

Evonik breaks ground on €80M biotechnology expansion in Slovakia

5 days ago

Evonik Industries has commenced construction on an €80 million biotechnology expansion at its Fermas site in Slovakia, targeting completion in early 2028 to boost pharmaceutical intermediate manufacturing capacity through advanced fermentation technology.

chemweek

2026-03-10

Evonik Maintains 2026 Profit Forecast

2026-04-28

Evonik to supply membrane technology to bioenergy firm in Malaysia

2026-05-13

Evonik Partners with MTCO for Biogas Purification

2026-05-27

Evonik partners with university in Mexico on solutions for mining industry

2026-06-18

Evonik to Cut 3,200 More Jobs, Discontinue Polyester Business