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.

French tyre major Michelin has inaugurated its first standalone Michelin Tyres & Services store in Kochi, Kerala. Launched in partnership with Global Tyres, this further adds to the company’s aggressive expansion plans for India.

The new facility spread across 5,500 sqft provides a comprehensive range of tyre-related services under one roof, including tyre sales, professional fitment, wheel balancing, alignment, nitrogen inflation and alloy wheel upgrades.

The store was inaugurated by Prashant Sharma, National Sales Manager at Michelin India, along with the team from Global Tyres.

Shantanu Deshpande, Managing Director, Michelin India, said, “Kochi is an important and fast-evolving mobility market. The launch of our first standalone Michelin Tyres & Services store in the city underscores our commitment to bringing world-class products and services closer to customers. Together with our experienced partner Global Tyres, we aim to deliver a premium experience that matches the expectations of Kochi’s growing base of automotive enthusiasts and discerning drivers.”

The tyre maker stated that Kochi is experiencing a steady rise in personal mobility and premium vehicle ownership.

Giti Tire Co., a leading Chinese tyre manufacturer, reported a sharp 48.9 percent fall in first-quarter net profit, citing surging raw material costs that outpaced revenue gains.

Net profit attributable to shareholders slid to 23.7 million yuan in the three months to 31 March, down from 46.3 million yuan a year earlier.

“The decrease in net profit was mainly due to the year-on-year increase in raw material prices,” the company said.

Despite the profit decline, Giti’s operating revenue rose 4.8 percent to 1.13 billion yuan, supported by stronger sales volumes. Net cash generated from operating activities rebounded to 35.7 million yuan, compared with an outflow of 45.9 million yuan a year earlier, as receipts from customers increased.

Operating costs jumped to 1.06 billion yuan, with raw material and production expenses comprising the bulk of the rise. Meanwhile, the company’s total assets grew 3.6 percent to 4.5 billion yuan by the end of the quarter.

Chinese tyre manufacturer Aeolus Tyres opened a new warehouse facility recently in Manila and launched its latest light truck tyre series at an event attended by more than 150 industry stakeholders from across the Philippines.

The warehouse, situated on Luzon Island, marks a significant expansion of Aeolus Tyres’ distribution network in the northern Philippines, aimed at strengthening dealer relationships and enhancing service delivery times across the region.

The company simultaneously unveiled its new light truck tyre range, which features enhanced load-bearing capacity and extended durability. The products have been developed specifically for the Philippine logistics sector, where demanding road conditions and heavy cargo requirements pose particular challenges for commercial vehicle operators.

Fleet operators and industrial partners gathered at the Manila launch event, which also saw the presentation of parent company Prometeon Tyre Group’s localisation strategy for the Philippine market.

The strategy focuses on adapting product specifications to match the country’s diverse terrain and operational requirements, providing more targeted solutions for local customers.

Aeolus Tyres’ warehouse expansion comes as the company seeks to capitalise on growing demand in the Philippine commercial vehicle market, where logistics companies are increasingly seeking reliable tyre solutions that can withstand the archipelago’s challenging road infrastructure.

The new facility is expected to reduce delivery times and improve inventory management for dealers across northern Luzon, one of the Philippines’ key economic regions.

The light truck tyre series launch marks Aeolus Tyres’ latest effort to gain market share in Southeast Asia’s commercial vehicle segment, where competition among international tyre manufacturers has intensified in recent years.

Continental is positioning itself as a key player in the sustainable transformation of commercial vehicle fleets in Europe through its Conti Eco and Conti Efficient Pro tyre lines. With the EU’s stringent CO₂ reduction targets for heavy-duty vehicles (a 45 percent cut by 2030 compared to 2019 levels), the company emphasises how tyre technology directly impacts fleet electrification and emissions reduction.

The development of these tyre lines is centred on increasing fuel and energy economy, particularly for regional and long-distance transportation. Continental tyres assist business fleets reduce their environmental impact by lowering rolling resistance while maintaining high mileage. The Conti Hybrid tyre is ideal for urban and regional operations with frequent stop-and-go traffic because of its increased resilience, enabling a long service life even under difficult conditions.

Continental prioritises collaboration with fleet operators and manufacturers to develop tyre solutions that meet changing industry expectations. According to Hinnerk Kaiser, Head of Product Development EMEA at Continental, the company's existing portfolio is already well-suited for electric mobility, but it will continue to evolve to assist the larger transition to zero-emission transportation. The emphasis remains on maximising rolling resistance, load capacity and longevity to ensure that tyres make a substantial contribution to sustainable fleet management.

Energy efficiency is still quite important as fuel combustion accounts for 90 percent of the CO₂ emissions of a diesel vehicle and even electric trucks see 75 percent of their emissions connected to the generation of power. By minimising rolling resistance, Continental’s tyres contribute directly to lowering energy consumption and overall fleet emissions, supporting both sustainability and cost efficiency.

Electric commercial vehicles, which are around 30 percent heavier than diesel trucks due to battery weight, necessitate tyres with greater load capability. The Conti Eco HS 5 and Conti Efficient Pro HS 5 lines meet this need with a higher load index, allowing fleet operators to retain payload capacity without sacrificing performance. Markus Erdmann of Designwerk Technologies, a Continental partner in electric mobility, observes that current battery-electric vehicles with around 500 kWh capacity now have low payload drawbacks, due in part to enhanced tyre engineering.