Streamlining: Synthomer divests acrylate monomers biz to Mutares; Evonik to cut further 3,200 jobs/discontinue polyester biz

UK-based polymers firm Synthomer has announced an agreement to divest Synthomer a.s., the operating company for its acrylate monomers business based in the Czech Republic, to Mutares SE & Co. KGaA, a German listed private equity-style company focused on companies in transition. Terms were not disclosed.

Acrylate Monomers is a supplier of acrylic acid and related monomers to the European merchant market and has c.300 employees based at its manufacturing site in Sokolov, Czech Republic. The site also supports some of the group’s downstream needs including as a supplier of acrylic monomers to group companies and producing acrylic dispersions on behalf of the group. These supply arrangements will continue under the new ownership.

Acrylate Monomers, currently part of Synthomer’s Health & Protection and Performance Materials division, operates in highly cyclical markets and is one of the more capital-intensive parts of the group’s portfolio. It also adds that the business is the only remaining upstream business in the Synthomer portfolio and was designated as non-core as part of the strategic review announced in October 2022.

The transaction will therefore remove a highly cyclical and capital-intensive base chemicals business from the group, improving profitability and cash generation, and further transitioning the simplified portfolio towards a specialty focus, says Synthomer.

Meanwhile in other news, German chemicals firm Evonik has announced that it will implement further structural and cost-cutting measures in the coming years to drive forward the company’s transformation.

"The global political situation remains uncertain, and economic growth is persistently weak. At the same time, international competition is becoming increasingly fierce," said CEO Christian Kullmann. "We must become stronger in this environment. Our fate is in our own hands, and we are determined to seize our opportunities."

The measures agreed upon by the Executive Board and employee representatives affect all business and administrative units worldwide. A total of 3,200 jobs will be eliminated, including 2,150 positions in Germany. This measure will run from 2027 to the end of 2029.

Evonik sees considerable potential for this through increased efficiency, digitalisation, and outsourcing. In addition, options for offshoring are being examined. As part of the ongoing "Evonik Tailor Made" Group program and efficiency programs in the operating businesses, Evonik plans to cut around 2,800 positions from October 2023 to the end of 2026.

In the Custom Solutions segment, Evonik will discontinue its global polyester business in 2027. This affects sites in Witten and Marl, Germany, as well as Shanghai, China.

"Ending the polyester business and closing production is an economically unavoidable step," says Lauren Kjeldsen, who is responsible for the segment on the Executive Board. "Global competitive pressure, structural disadvantages in Europe, and declining market dynamics mean that none of the alternatives examined would have been economically viable for Evonik in the long term."

The polyester business generates annual revenues of around EUR150 million but has not been profitable for years. The site in Witten, which employs 266 people, will be closed in 2027.

In Marl, 45 jobs will be cut, while 35 positions will be eliminated at the production plant in Shanghai, China.

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