Evonik is reshaping its Health Care division to concentrate on strategic growth areas. As part of this transformation, the company will explore strategic options, including partnerships or divestitures, for its keto and pharma amino acid production facilities in Ham and Wuming. Additionally, Evonik plans to halt keto acid production in Hanau by the end of 2025, impacting approximately 260 employees. The keto and pharma amino acid segment currently generates around 100 million euros in annual revenue.
Integrated within Evonik’s Nutrition & Care life sciences division, the Health Care business is evolving into a provider of system solutions, expanding in key areas such as complex and highly potent active pharmaceutical ingredients (APIs), oral and injectable drug delivery, and precision biosolutions, including lipids for mRNA and gene delivery and cell culture ingredients. These tailored system solutions combine products, technologies, and services, offering significant sustainability benefits.
“This marks the beginning of a new phase in our transformation. We are committed to social responsibility and will support all affected employees to find the best solutions for each individual. I believe this new chapter will sharpen our focus in the Health Care sector and empower our customers to drive innovation,” stated Thomas Wessel, Chief Human Resources Officer and Labor Relations Director.
The keto and pharma amino acid operations in Ham and Wuming possess significant potential, and Evonik is not considering closing these sites. The company aims to continue serving its customers while making necessary investments to help this business realize its full capabilities. However, Evonik’s strategy to prioritize system solutions and core growth areas necessitates streamlining its asset footprint. As a result, the company is evaluating strategic options for these sites, including potential partnerships or divestments.
“Our team in Hanau has played a crucial role in saving lives through the production of active pharmaceutical ingredients. Finding a suitable path for our employees is very important to me. Meanwhile, our Health Care business will concentrate all efforts and resources on future technologies to better meet customer needs and accelerate growth,” said Yann d’Hervé, Head of the Health Care business line.
Keto acids serve as active pharmaceutical ingredients (APIs), while pharma amino acids and their derivatives are used in various applications, including medical nutrition, cosmetics, human nutrition, APIs, and pharmaceutical intermediates.