OQ Chemicals to Cut 10% of the Workforce
Toward achieving cost savings in the double-digit million euro range, Germany’s OQ Chemicals, part of the Oman-based OQ energy group, has announced a cost-cutting scheme that will see it cut 10% of the workforce.
At the same time, the Oberhausen-based global manufacturer of Oxo Intermediates and Oxo Performance Chemicals such as alcohols, polyols, carboxylic acids, specialty esters and amines said it plans to outsource service areas such as technical workshops and logistics to external partners.
“We are addressing the challenges posed by the changing conditions in Germany to ensure the future readiness of our company,” said CEO Oliver Borgmeier. “The cost pressure is substantial.” In the past year alone, he said the company faced energy cost rises in the high triple-digit euro range.
The CEO explained that the reorganization is needed to maintain the chemical producer’s competitiveness in a “rapidly changing economic and geopolitical environment” marked by high prices for raw material and energy as well as inflation, particularly in Europe.
Borgmeier said the planned measures will help the former Oxea to focus on its core business and establish a more efficient structure that meets the current and future requirements of a successful medium-sized chemical market player.
In other moves, the company aims to strengthen its digitalization initiatives and further develop its product portfolio. The corporate sustainability program known as “reduce” is set to play what it says is a “significant role” along the path to make OQ Chemicals climate-neutral by mid-century.
Borgmeier said the German chemical producer “will take all necessary steps to make the reorganization socially responsible and preserve as many jobs as possible. “
Through a leaner, yet carefully redesigned and more efficient structure, he said, “we are securing our German locations and will continue to reliably supply our global customers with essential components for their production needs.”
Author: Dede Williams, Freelance Journalist
