“Project Brenntag” to deliver signifcant Contribution to Operating EBITDA with Site Network Optimisation and Workforce Reduction
Global chemical distributor Brenntag AG (Essen, Germany) announced that the Board of Management and the Supervisory Board have decided on the key parameters of the group’s transformation program dubbed “Project Brenntag”, which is aiming at a further expansion of Brenntag’s leading market position and also at sustainable organic earnings growth.
The announcement follows a recent media release on the future operation model with two distinct global devisions and changes to the Board of Managemnt, effective 01. January 2021.
Key parameters of the program include an optimisation of the site network, with the intention to close ca. 100 sites globally as well as a reduction of the global workforce of approx. 1’300 (i.e. ca. 7.5% of a current total of 17’500 employees) over the next two years. The company is planning to implement the reduction in a “socially responsible manner”, the statement said.
The overall net cash outflow for the project is forecasted to be EUR 370 mn. Brenntag expects an Operating EBITDA contribution from the project that increases year by year to a full level of EUR 220 mn per annum, which should be reached in the beginning of 2023.
Source: Brenntag press release
HGE – DCG / 27.10.2020