OQ Chemicals: Cost-cutting program and realignment
OQ Chemicals is implementing a two-year cost-saving program that includes organisational realignment and workforce reductions in Germany. The company cites high raw material and energy prices as well as inflation rates as the reason.
According to the company, 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 are expected to result in long-term annual cost savings in the double-digit million Euro range. The goal of the organisational changes is to concentrate on the core business and establish a more efficient structure.
Additional energy costs
“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.
