Evonik, a global speciality chemicals company, has announced a significant reorganisation of its management structure and business segments. The changes, set to take effect on 1 April 2025, aim to streamline operations, enhance strategic focus and position the company for long-term growth and sustainability.

New Business Segments

The company will replace its current four-division structure with two new segments: Custom Solutions and Advanced Technologies. These segments will directly report to members of the Executive Board, eliminating an entire management layer and reducing bureaucracy.

• Custom Solutions will focus on innovation-driven business models, catering to niche markets with customised solutions. This segment, employing around 7,000 people, includes additives for paints, coatings, and products for the cosmetics and pharmaceutical industries.
• Advanced Technologies will emphasise efficiency, operational excellence, and cost leadership. It employs approximately 8,000 people and includes high-performance polymers and hydrogen peroxide production.

“The Supervisory Board supports the Executive Board’s strategy and the structural development of the Group,” said Bernd Tönjes, Chairman of the Supervisory Board. “We are convinced that Evonik will be able to exploit its full potential for profitable growth with the new structure.”

The two segments collectively generate annual sales of around €6 billion each and are expected to complement each other. Custom Solutions will drive growth, contributing disproportionately to adjusted EBITDA, while Advanced Technologies will focus on generating cash flow.

Management Overhaul

Evonik is implementing a leaner management model as part of its “Evonik Tailor Made” programme. This programme will reduce costs and streamline decision-making by 2026. The number of management levels will be cut from ten to six, and over 3,000 organisational units will be eliminated.

As part of the restructuring, Lauren Kjeldsen, currently head of the Smart Materials division, will lead Custom Solutions, while Claudine Mollenkopf, head of the Specialty Additives division, will oversee Advanced Technologies. Both will join the Executive Board in April 2025.

“Our Executive Board is becoming more international and will have more women,” said Christian Kullmann, Chairman of the Executive Board. “Lauren and Claudine have been very successful leaders, and I look forward to working with them. Together, we will make Evonik better.”

Leadership Transitions

Harald Schwager, Deputy Chairman of the Executive Board since 2017, will retire at the end of the year, along with Johann-Caspar Gammelin and Joachim Dahm, two other senior executives.

Praising Schwager’s contributions, Tönjes said: “Harald Schwager has made lasting contributions to our company. This applies particularly to Research and Development, which has steadily increased its innovation power under his leadership.”

Kullmann echoed the sentiment: “For eight years, I worked very closely with Harald in an atmosphere of mutual trust. He has done a great job for our company, particularly in the areas of operational excellence and innovation.”

Thomas Wessel, Chief Human Resources Officer and Labour Director, will take on additional responsibilities, including overseeing Infrastructure and the new NextGen Technologies function, which focuses on technological sustainability.

Focus on Sustainability

Evonik is also driving its sustainability transformation forward. The company aims to increase the share of its NextGen Solutions—products with significant sustainability benefits—to over 50 percent by 2030.

“We have significantly improved the quality of our portfolio in recent years,” said Kullmann. “Our new management model takes this approach into account.”

Evonik’s restructuring is expected to create a more agile organisation, enabling the company to respond effectively to market demands while continuing its focus on innovation and sustainability.

TyreSafe, the UK’s charity dedicated to raising tyre safety awareness, has entered into a partnership with AUTOMOTIV8, an innovative consultancy led by industry veteran Mike Garwood, to enhance road safety and spread awareness among road users on the critical importance of tyre care and vehicle maintenance.

Garwood started his career in 1973 as a fitter in the fast-fit industry and rose to a key position at National Tyres and Autocare. He has a long history with the Tyre Industry Council, the forerunner of TyreSafe. He conducted several roadside tyre inspections during his employment, teaching drivers about the risks of carelessness and the need of maintaining their vehicles. By creating a cutting-edge software that will operate as a single point of contact for drivers to manage their vehicle's history, maintenance logs and precise tyre specs, he continues his aim to increase road safety. This solution, which is scheduled to emerge in the first quarter of 2025, intends to streamline vehicle safety management by enabling drivers to remain informed and proactive. As part of this collaboration, TyreSafe is poised to leverage technology and expertise to make a tangible impact on road users’ attitudes towards tyre and vehicle maintenance.

Garwood said, “I am delighted to join TyreSafe at a time when it is clearly growing in influence and gravitas. I am committed to promoting tyre safety and addressing the significant lack of awareness among road users. It has, for decades, really concerned me just how underestimated tyre safety is, and anything I can do to help change this, I will.”

Stuart Lovatt, TyreSafe Chair, said, “We are thrilled to welcome Mike Garwood and AUTOMOTIV8 into the TyreSafe family. Mike’s passion for road safety and deep understanding of the automotive industry will be invaluable as we work together to reach even more road users with vital safety messages. His innovative approach aligns perfectly with TyreSafe’s mission to reduce tyre-related incidents and make our roads safer for everyone.”

TyreSafe, the UK’s charity dedicated to raising tyre safety awareness, has entered into a strategic partnership with the British Aggregates Association (BAA) to improve tyre safety awareness across the UK’s aggregates industry.

Over 100 SMEs in the aggregates industry are represented by the BAA, which places a high priority on the efficiency and safety of its members, many of whom drive light and grey fleets in addition to heavy goods vehicles (HGVs). This partnership, which brings together two organisations dedicated to promoting workplace and road safety, especially in industries with heavy machinery and large fleet operations, will aim to provide these companies with important tyre safety messages and make sure that their fleets and employees' personal vehicles are kept up to the highest safety standards.

The collaboration comes at a good moment, as TyreSafe keeps refining its instructional tools and adding to its offering to better assist fleet operators and HGV drivers. TyreSafe has also been granted access to the BAA's monthly newsletter and urgent news bulletins, which gives them a useful platform to advise their members about tyre safety. By highlighting the significance of routine tyre inspections, appropriate maintenance and respect to safety requirements, TyreSafe will be able to reach a wider audience within the aggregates business.

Stuart Lovatt, TyreSafe Chair, said “We are thrilled to partner with the British Aggregates Association. This collaboration will enable us to extend our tyre safety messages to an industry that relies heavily on both heavy and light vehicle fleets. By working together, we can help ensure that vehicles in the aggregates sector are as safe and efficient as possible, ultimately saving lives and reducing costs for businesses.”

David Lukey, Director of Communications, British Aggregates Association, said, “Joining forces with TyreSafe aligns perfectly with our commitment to safety within the aggregates industry. We are eager to share TyreSafe’s expertise with our members and help them implement best practices in tyre safety. This partnership is a natural fit, and we look forward to a productive collaboration.”

Indian tyre manufacturer CEAT has solidified its commitment to Sri Lanka’s economic growth as part of its USD 225 million acquisition of the Camso brand’s Off-Highway construction equipment tyres and tracks business from Michelin.

The deal, which includes two advanced manufacturing facilities in Sri Lanka, represents one of the largest foreign investments in the country in recent years.

Key Discussions with Sri Lankan Leaders

CEAT’s leadership team, including Managing Director and CEO Arnab Banerjee and CEAT Specialty Chief Executive Amit Tolani, met with several high-profile dignitaries in Colombo. The delegation, alongside representatives from CEAT Kelani Holdings Pvt Ltd, engaged in discussions with:

• Dr Harini Amarasuriya, Honourable Prime Minister of Sri Lanka
• His Excellency Santosh Jha, High Commissioner of India
• Prof Anil Jayantha, Deputy Minister of Labour and Economic Development
• Dr Harshana Suriyapperuma, Deputy Minister of Finance and Planning
• Mr Arjuna Herath, Chairman, Board of Investment of Sri Lanka
• Mr Mangala Wijesinghe, Chairman, Export Development Board

The discussions focused on strengthening bilateral ties between India and Sri Lanka, exploring growth opportunities, and CEAT’s role in bolstering Sri Lanka’s economy.

Industrial and Economic Significance

The acquisition is set to elevate Sri Lanka’s position as a global tyre manufacturing hub. CEAT’s investment will:

• Boost foreign exchange earnings, contributing significantly to the nation’s economic stability.
• Generate employment across manufacturing, logistics, and allied sectors.
• Encourage further international investments, reinforcing Sri Lanka’s appeal as a destination for large-scale foreign projects.
• Enhance manufacturing capabilities, leveraging Camso’s advanced portfolio to diversify Sri Lanka’s industrial output.

Strategic Benefits for CEAT

The acquisition provides CEAT access to over 40 global OEMs and 200 international distributors. It strengthens its position in the high-margin Off-Highway Tyre (OHT) segment and integrates Camso’s expertise in compact construction tyres and tracks.

CEAT’s Legacy in Sri Lanka

For over three decades, CEAT has been a key partner in Sri Lanka’s progress, supplying more than 50 percent of the nation’s tyre requirements. This acquisition underscores CEAT’s enduring commitment to driving innovation and fostering regional growth.

Nexen Tire has announced a strategic marketing partnership with German football powerhouse Bayern Munich. The collaboration, set to begin in the second half of the 2024-25 season, positions Nexen Tire as the club’s official tyre partner.

Bayern Munich, the most successful team in Germany’s Bundesliga, boasts a record six UEFA Champions League titles. As part of the agreement, Nexen Tire will showcase its brand on LED display boards at Allianz Arena, the club’s iconic 75,000-seat stadium. The advertisements will feature prominently during Bundesliga home matches and will also be broadcast across Germany, Austria and Switzerland, amplifying the company’s visibility in key European markets.

In addition to stadium advertising, Nexen Tire plans to launch promotional campaigns featuring Bayern Munich players, aimed at fostering stronger connections with football fans worldwide.

Europe accounts for approximately 40 percent of Nexen Tire’s total revenue, making it a vital market for the company. Football, the continent’s most popular sport, serves as an ideal platform for Nexen Tire to engage with European consumers. This partnership with Bayern Munich builds on Nexen Tire’s extensive sports marketing history in Europe, which includes a 12-year sponsorship of Bundesliga club Eintracht Frankfurt and collaborations with Manchester City in the English Premier League, Juventus in Serie A, and SK Slavia Prague in the Czech Republic.

Beyond Europe, Nexen Tire has expanded its marketing efforts to North America and the Middle East. In the US, the company advertises at the home stadium of Major League Baseball team San Diego Padres, while in the UAE, it sponsors Al Nasr SC, a professional football club.

Nexen Tire’s focus on strategic marketing has contributed to strong financial performance, particularly in Europe. The company recorded a record-high revenue of KRW 1,004.6 billion in the region in 2023, driven by robust sales growth.

The partnership with Bayern Munich is expected to cement Nexen Tire’s presence in Europe further, aligning with its broader global ambitions.

“As NEXEN TIRE’s young and dynamic brand image serves as our foundation, we plan to further enhance our brand recognition in Europe by collaborating with Bayern München, one of the world’s most prominent football clubs,” said Travis Kang, Global CEO of NEXEN TIRE. “We will further demonstrate NEXEN TIRE’s vitality on a worldwide scale.”