Covestro to save €400m/year by 2028 through focus on digitalization, AI

LONDON (ICIS)–Covestro will save €400 million annually in material and personnel costs by the end of 2028 through a transformation programme focused on digitalization and artificial intelligence, it said on Tuesday.

Of the total global savings from its STRONG initiative, €190 million will be in Germany.

Covestro said cost savings from the programme had already been initiated, adding that it was working continuously to further improve existing structures and processes.

“This includes making production, administrative units and other areas as efficient as possible and continuously expanding the innovation pipeline. Covestro thereby continues the successful implementation of its strategy,” the polymers producer said in a statement.

Any job cuts resulting from the transformation programme would be handled in a socially responsible manner, such as voluntary termination agreements, a company spokesperson said separately via email.

“With the collective agreements and the extension of employment security announced today, Covestro is making a clear commitment to Germany as a business location,” the spokesperson added.

On Monday, Covestro announced it had begun concrete negotiations on a possible investment by Abu Dhabi oil company ADNOC that would value its equity at €11.7bn.

Front page picture: Covestro’s headquarters in Leverkusen, Germany
Source: Friedemann Vogel/EPA-EFE/Shutterstock