Germany's Evonik May Curb Spending, Make Acquisitions

Evonik, Germany's second-largest chemical producer behind BASF, posted earnings down nearly 25% for the 2014 first quarter and said it may cut its €6 billion investment budget launched in 2012 by up to 15%.

Klaus Engel, CEO of the Essen-based group said that spending could be delayed and the program might be reduced by 10-15%.

"We are waiting in some major projects here for better market conditions to go ahead with further spending," Engel said in a conference call.

While soft-pedaling capital expenditure, Engel said Evonik would look for acquisitions worth more than €1 billion to strengthen its portfolio. He did not rule out larger takeovers or using equity financing. Minor acquisitions might come in the course of the year, he said.

As a minority partner in the joint venture with Russia's Varshavsky Group, Evonik is building a new plant for amino acid in the Rostow-on-Don region, close to the eastern Ukrainian border. The plant is due to come on stream in in 2014 or 2015.

Virtual Event

Digitalization in the Chemical Industry
CHEManager Spotlight

Digitalization in the Chemical Industry

Save the Date: October 22, 2025
The event will be promoted to a combined audience of over 100,000 professionals across Europe through the CHEManager and CITplus networks.

Interview

Specialty Chemicals in a Shifting World
Adapting to Tariffs and Strengthening Regional Networks

Specialty Chemicals in a Shifting World

Jennifer Abril, President & CEO of SOCMA, discusses the impact of new tariffs and the importance of regional supply networks in the specialty chemical industry.

most read

Photo
21.03.2025 • News

What’s Next for Pharma Supply Chains?

Sudden shifts in demand, supply shortages and global collapse have put immense pressure on pharmaceutical logistics. To address these challenges, PHARMAP 2025 brings together industry experts to discover AI-driven supply chain optimisation, strategic logistics partnerships and digital solutions that enhance efficiency and resilience in the pharmaceutical supply chain.