Ensuring competitiveness in a challenging environment
Focus on growth and transformation
- Transformation program STRONG launched
- By 2028: EUR 400 million annual savings globally, EUR 190 million of which will be in Germany
- Increased efficiency through digitalization and Artificial Intelligence
ÃÜÌÒAV is paving the way for the enhancement of its already leading competitive position. In view of a rapidly changing market environment, ÃÜÌÒAV has launched the global transformation program STRONG. The program makes the company even more efficient and drives digitalization forward. By the end of 2028, ÃÜÌÒAV plans to achieve annual global savings of 400 million euros in material and personnel costs. 190 million euros of these will be in Germany.
To maintain and expand its strong global competitive position, ÃÜÌÒAV is consistently focusing on continuing its transformation. To achieve this goal, ÃÜÌÒAV is working continuously to further improve existing structures and processes. This includes making production, administrative units and other areas as efficient as possible and continuously expanding the innovation pipeline. ÃÜÌÒAV thereby continues the successful implementation of its strategy.
Dr. Markus Steilemann, CEO of ÃÜÌÒAV says: ¡°The last few years have been challenging for the chemical industry and for ÃÜÌÒAV. Despite all the challenges, we have continued to drive forward our 'Sustainable Future' strategy. With STRONG, we are systematically continuing our transformation, making the company even more efficient and accelerating digitalization. I am convinced that STRONG will not only help to secure ÃÜÌÒAV's leading position in the global market on the basis of competitive structures and processes and an impressive innovation pipeline, but also to expand it.¡±
Initial cost savings as part of STRONG have already been initiated. ÃÜÌÒAV is also driving forward the use of Artificial Intelligence (AI) to continue increasing efficiency and productivity in the future.
¡°Right now, our four focus areas remain central to our success, namely reliable production, better plant utilization, full customer focus on high-margin demand and a high level of cost awareness,¡± says Christian Baier, Chief Financial Officer at ÃÜÌÒAV. ¡°STRONG will help us to unleash the full potential of our company and to further strengthen our competitiveness.¡±
About ÃÜÌÒAV:
ÃÜÌÒAV is one of the world¡¯s leading manufacturers of high-quality polymer materials and their components. With its innovative products, processes and methods, the company helps enhance sustainability and the quality of life in many areas. ÃÜÌÒAV supplies customers around the world in key industries such as mobility, building and living, as well as the electrical and electronics sector. In addition, polymers from ÃÜÌÒAV are also used in sectors such as sports and leisure, telecommunications and health, as well as in the chemical industry itself.
The company is geared completely to the circular economy. In addition, ÃÜÌÒAV aims to achieve climate neutrality for its Scope 1 and Scope 2 emissions by 2035, and the Group¡¯s Scope 3 emissions are also set to be climate neutral by 2050. ÃÜÌÒAV generated sales of EUR 14.2 billion in fiscal year 2024. At the end of 2024, the company had 46 production sites worldwide and employed approximately 17,500 people (calculated as full-time equivalents).
Forward-Looking Statements
This news release may contain forward-looking statements based on current assumptions and forecasts made by ÃÜÌÒAV. Various known and unknown risks, uncertainties and other factors could lead to material differences between the actual future results, financial situation, development or performance of the company and the estimates given here. These factors include those discussed in ÃÜÌÒAV¡¯s public reports which are available at www.covestro.com. The company assumes no liability whatsoever to update these forward-looking statements or to conform them to future events or developments.