News Markets & Companies
Evonik closes polyester business and cuts jobs
The chemical group Evonik is shutting down its global polyester business by 2027 and cutting 3,200 jobs worldwide. The company’s restructuring not only has internal implications but also affects the raw material supply of the paints and coatings industry.
Evonik Industries has announced that it will cut 3,200 jobs worldwide by the end of 2029 and discontinue its polyester business entirely. The affected business unit, which most recently generated annual revenue of approximately EUR 150 million, was unable to overcome economic challenges such as structural disadvantages in Europe and declining market momentum. The decision affects the Witten, Marl and Shanghai sites, with 266 jobs being cut in Witten, 45 in Marl and 35 in Shanghai.
“Ending the polyester business and closing production is an economically unavoidable step,” explained Lauren Kjeldsen, member of the Executive Board at Evonik. CEO Christian Kullmann added: “The global political situation is uncertain, and economic growth remains persistently weak.” Evonik has pledged to manage the job cuts in a socially responsible manner. Measures such as early retirement and internal job placement are intended to mitigate the social impact.
Implications for the paints and coatings industry
The closure of the polyester business is not only a significant blow for Evonik itself but also for the paints and coatings industry. Polyester resins are an essential raw material for many industrial and decorative applications, as they offer excellent adhesion and film-forming properties. A decline in available raw materials could present manufacturers with challenges in finding alternative suppliers or switching to other binder systems.
Small and medium-sized enterprises in particular could come under pressure from rising raw material prices and reduced supply capacities. Evonik’s decision also highlights the growing structural problems facing the European chemical industry. High energy costs, regulatory burdens and international competitive pressure are making it difficult to operate certain business areas economically.
Long-term restructuring and outlook
With its restructuring, Evonik is pursuing a strategic realignment. As part of the “Tailor Made” efficiency programme, savings potential is to be leveraged through digitalisation, outsourcing and offshoring. The group is also focusing on future-oriented business areas to secure its long-term competitiveness.
For the paints and coatings industry, this transformation could also present opportunities. The development of new alternatives to polyester resins or innovative binder technologies could advance the sector in the long term. At the same time, market consolidation will challenge smaller suppliers that need to adapt to the new conditions.
Evonik remains a global player with revenue of EUR 14.1 billion in 2025 and a presence in over 100 countries. However, the group’s transformation demonstrates just how significantly the chemical industry must adapt to a changing global environment.
