OQ Chemicals says it has been facing the challenges of high raw material and energy prices, as well as inflation rates, particularly in Europe. To combat this and maintain its competitiveness, the company says it is implementing a two-year cost-saving programme that includes organisational realignment and workforce reductions in Germany.
OQ
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 company says that 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 aims to 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.
Dr. Oliver Borgmeier, CEO of OQ Chemicals said: “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.”