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Oct 15, 2024

Evonik Plans to Restructure Its Keto and Pharma Amino Acid Business

Evonik is undergoing a strategic transformation of its Health Care business to sharpen its focus on core growth areas. As part of this initiative, the company is exploring strategic options for its

Evonik is undergoing a strategic transformation of its Health Care business to sharpen its focus on core growth areas. As part of this initiative, the company is exploring strategic options for its keto and pharma amino acid production sites in Ham and Wuming. These options may include partnerships or divestment to optimize the future of these facilities. In addition, Evonik plans to discontinue keto acid production at its Hanau site by the end of 2025, a decision that will impact approximately 260 employees. The keto and pharmaceutical amino acid business currently produces an average annual revenue of approximately 100 million euros.

Evonik’s Health Care business operates within the Nutrition & Care division, which is evolving into a system solutions provider with a focus on key areas of expertise. These areas include complex and highly potent active pharmaceutical ingredients (APIs), advanced drug delivery methods (both oral and injectable), and precision biosolutions such as lipids for mRNA and gene delivery, as well as cell culture ingredients. The company's system solutions approach integrates products, technologies, and services, delivering tailored offerings with proven sustainability benefits.

“This marks the beginning of a new chapter in our transformation. Social responsibility remains at the core of what we do, and we are committed to supporting all affected employees by finding the best possible solutions for each individual,” said Thomas Wessel, Chief Human Resources Officer and Labor Relations Director. He emphasized that the transformation will enable Evonik's Health Care business to concentrate on its strategic priorities, while helping customers drive innovation.

The production sites in Ham and Wuming hold significant potential, and Evonik remains committed to their continued operation. The company does not plan to close these facilities but aims to enhance their potential through investments and partnerships. By aligning these assets with the company's broader strategic focus on system solutions, Evonik can ensure that the business thrives in the future. Divestment or partnerships would allow the keto and pharma amino acid business to reach its full potential while Evonik concentrates its efforts on high-growth areas.

Yann d'Hervé, Head of the Health Care business line, acknowledged the contribution of the Hanau site in producing life-saving APIs, stressing the importance of finding suitable opportunities for the employees impacted by the restructuring. At the same time, he expressed confidence that this transformation will position the Health Care business to better serve customers and accelerate future growth.

Keto acids are key components in APIs, while pharma amino acids have diverse applications, including in medical nutrition, cosmetics, human nutrition, and as pharmaceutical intermediates.