1/ OQ, a leading manufacturer of oxo chemicals, is implementing a two-year cost-saving program in response to high raw material and energy prices.
2/ Includes outsourcing service areas and reducing non-production jobs by up to 10% in Germany.
3/ These measures will result in long-term annual cost savings in double-digit million Euro range, allowing concentration on its core business and establishing a more efficient structure.
4/ To strengthen digitalisation efforts, develop product portfolio, and aim for climate neutrality through its sustainability program 'reduce'.
💰 Estimated Cost Savings: Unquantifiable. ~$ 11 Mn. - ~$ 50 Mn. in two years💸
💼 Cost Optimisation Impact:
1/ Benefit customers through competitive pricing and reliable supply of essential components. Streamlined operations + enhanced efficiency ensures ongoing partnerships and good service.
2/ OQ Chemicals' suppliers may experience some changes due to organisational realignment. Outsourcing of service areas could lead to changes in existing relationships or create a need for new partnerships. The overall impact on suppliers will depend on specific arrangements by OQ Chemicals during this transition.
🌍 Country: Germany
🏢 Company: OQ Chemicals GmbH
🛍️ Industry: Chemicals
💼 Cost Element: Material cost 💸
🔍 Nature: Opex
🔢 Cost Classification: Semi-Variable Cost + Operations Overheads / Administrative Overheads / Marketing Overheads
Source: June 3, 2023 | Business Wire | https://www.businesswire.com/news/home/20230525005115/en/OQ-Chemicals-Launches-Cost-Cutting-Program-and-Organizational-Realignment-in-Germany
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