is reportedly planning a complete restructuring of its global organizational structure. no longer hopes to operate three large bases in europe in the future and will outsource operations to new service companies. the management team will also develop a new group management model. thousands of employees are affected by the scheme.
” is becoming leaner, faster and more international,” said christian , ceo
kullmann said in an interview with german media. by his own account, he hopes to use the revamp to create leverage for greater investment in future business.
the group’s outsourcing of services at its production sites in marl, antwerp and wesseling could bring in new capital. this involves logistics, energy production, technical services, workshop and factory safety. wants to set up three independently operating companies with up to 4,000 employees
employees.
this “divestment” is expected to be completed in the second half of 2025. kullmann leaves open all options for the future of the new company: sale or investor takeover, cooperation with other chemical park operators or continued self-management. “we will find individual solutions.”
reorganization of the administrative apparatus should also create freedom. “it’s time for to get rid of internal bureaucracy.” the group currently has more than 8,600 organizational structures, with a total of 8 levels from production to the board of directors, and there is one manager for every 4 employees. kullmann believes that these institutions are too complex and too expensive. ”
is another large company severely constrained by growing complexity. at leverkusen-based bayer, new ceo bill
anderson has launched a major project aimed at reducing layers of hierarchy and management. bayer employees are expected to work and make decisions more independently.
‘s projects are also aimed in this direction. kullmann took an unusual approach. the ceo did not initiate new efficiency initiatives by intervening in existing administration; he designed a completely new organizational model.
to achieve this, the essen-based company has developed a
made” has brought together a dozen experienced employees in the project. they expect to develop a modern architecture for global corporate management by spring 2024. the group is currently deliberately avoiding consulting services from external consulting firms.
“if we ourselves don’t know where we have to make changes, i think it would be a strategic capitulation,” kullmann said. the plan will be implemented within three years.
kullmann could not yet quantify how many jobs would be affected or how much savings the switch would bring. employees in germany in 2032
there will be no layoffs for operational reasons before the year. two-thirds of the 34,000 employees worldwide are based in germany.
but for kullmann it is clear: “in the future we will have fewer functional and managerial staff. they should not be clerks with an asterisk on their shoulders, but should have an entrepreneurial spirit.” to achieve this, they want to increase freedom and responsibility, and take action against “bureaucracy.”
underlying these plans is an experience common to many large companies: in the past, executive-wide savings plans did not bring the long-term success hoped for – even at . kullmann talks about “treating the symptoms.” in his view, bureaucracy always creates more bureaucracy.
‘s recent sales reached 18.5 billion euros, ranking second in the german chemical industry after . since taking over as ceo in 2017, kullmann has carried out a major restructuring of the business portfolio: billions of euros have been invested in the lucrative and fast-growing specialty chemicals sector, especially in the united states and asia. the group is divesting its bulk chemicals products.
the final important step in this restructuring is coming: the diaper absorbent materials business is expected to find a new owner this year, and a number of financial investors are interested. for the remaining business units of ‘s “performance materials” division, the sale process may take longer due to the weak economy.
‘s internal analysis showed that management was not following this portfolio change and was still too focused on germany. now kullmann wants to give units around the world more freedom in decision-making.
“this is where the market is born. we will move functions there because we want to be closer to our customers.” “this will also be necessary for geopolitical reasons if protectionist tendencies intensify.”
the headquarters in essen will focus entirely on strategic control.
for kullmann, 54, a radical restructuring is the main project for the remainder of his tenure as ceo of . in 2021, the supervisory board extended his contract until 2027. he announced that by then, the group’s future operations will generate an additional €1 billion in sales, mainly through organic growth.
this includes all businesses in which works closely with its customers, where barriers to market entry for new competitors are high and where the group has strong pricing power. for example, additives that improve the properties of plastics and chemicals, ingredients for cosmetics, food and pharmaceuticals, and biotech products.
for such complex production, requires special engineers who will remain in the technology department in the future. all other location services will be transferred to the three new companies. financial investors in particular may be interested in taking a stake if is spun off from these companies.
this has long been the case at other large chemical parks in germany. in 2019, bayer and lanxess sold their stakes in currenta, the operator of chemical parks in leverkusen, krefeld and dormagen. the buyer is australian infrastructure fund macquarie. currenta is valued at 3.5 billion euros in this transaction.
