MONHEIM AM RHEIN, Germany--(BUSINESS WIRE)--As one of the world's leading manufacturers of oxo chemicals, OQ Chemicals faces the challenges of high raw material and energy prices, as well as inflation rates, particularly in Europe. To maintain its competitiveness in the rapidly changing economic and geopolitical environment of today, the company is implementing a two-year cost-saving program that includes organizational realignment and workforce reductions in Germany.
OQ Chemicals, in Germany, plans to outsource service areas like technical workshops and logistics to external partners and reduce up to ten percent of jobs in non-production areas in a socially responsible manner. These measures will result in long-term annual cost savings in the double-digit million Euro range. The goal of the organizational 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. OQ Chemicals will strengthen its digitalization 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 Dr. Oliver Borgmeier, CEO of OQ Chemicals.
About OQ Chemicals
OQ Chemicals (formerly Oxea) is a global manufacturer of Oxo Intermediates and Oxo Performance Chemicals such as alcohols, polyols, carboxylic acids, specialty esters, and amines. These are used to produce high-quality coatings, lubricants, cosmetic and pharmaceutical products, flavors and fragrances, printing inks, and plastics. OQ Chemicals employs more than 1,400 people worldwide and markets its chemicals in more than 60 countries. The company is part of OQ, an integrated energy company originating in Oman. More information is available at chemicals.oq.com .