OQ to undertake cost cuts, organisational revamps in Germany
Against the back of sluggish demand for European oxo-based chemicals, manufacturer OQ Chemicals is implementing a two-year cost-saving programme that includes organisational realignment and workforce reductions in Germany.
It plans to outsource service areas like technical workshops and logistics to external partners and reduce up to 10% of jobs in non-production areas. These measures will result in long-term annual cost savings in the double-digit million Euro range.
The company says it is facing the “challenges of high raw material and energy prices, as well as inflation rates, particularly in Europe” and it is taking these measures “to maintain its competitiveness in the rapidly changing economic and geopolitical environment”.
The goal of the organisational changes is to concentrate on the core business and establish a more efficient structure that meets the current and future requirements of a successful medium-sized chemical company.
It adds that it will “strengthen its digitalisation initiatives and further develop its product portfolio. The company’s sustainability program ‘reduce’ will play a significant role, aiming to make OQ Chemicals climate-neutral by mid-century”.
“We are addressing the challenges posed by the changing conditions in Germany to ensure the future readiness of our company. The cost pressure is substantial – in the previous year alone, we incurred additional energy costs amounting to a high three-digit million Euro figure. We will take all necessary steps to make the reorganization socially responsible and preserve as many jobs as possible. Through a leaner, yet carefully redesigned and more efficient structure, we are securing our German locations and will continue to reliably supply our global customers with essential components for their production needs,” said Oliver Borgmeier, CEO of OQ Chemicals.
