Evonik to invest 8 billion eur by 2030 in high-margin businesses -CEO

BERLIN (Reuters) -German chemicals company Evonik plans to invest 8 billion euros ($8.45 billion) by 2030 to boost growth in its smart materials, specialty additives and nutrition & care units, its chief executive said.

The company, which makes ingredients for products ranging from animal feed and diapers to Pfizer/BioNTech’s COVID-19 vaccine, is restructuring to focus on high-margin and high-growth businesses.

Evonik’s business in Russia will come to a standstill, CEO Christian Kullmann said. “We are deliberately letting it run down.”

Methionine, an amino acid that Evonik produces in Russia and which is used as an animal-feed additive, is now on the European Union’s embargo list, according to Kullmann.

Half of the investments are planned for Germany, Kullmann said. The money was earmarked for products that are sustainable and generate a margin on earnings before interest and tax of more than 20%.

The group had decided to sell its 900-staff baby care business next year, and was looking for a partner or a buyer for its C4 Verbund unit, which makes components for car petrol, rubber and PVC plastic, with around 1,000 staff.

Evonik also plans to divest its production site in Luelsdorf, close to the city of Cologne, the CEO said. Evonik has around 600 employees at the chemical site.

($1 = 0.9471 euros)

(Reporting by Matthias Inverardi, writing by Kirsti KnolleEditing by Madeline Chambers and Susan Fenton)