Covestro decides on solidarity measures
Together through the coronavirus pandemic
• Agreement between employer and employee representatives on reduction of working hours and salaries
• Global solidarity across all group subsidiaries
• Long-term strategy remains intact: focus on sustainability and innovation
Given the great economic challenges posed by the global coronavirus pandemic, the Board of Management and employees of Covestro have decided to make a solidarity contribution to ensure that the company is well-positioned in the current environment.
The Board of Management and employee representatives have agreed on a model to reduce working hours in Germany, while adjusting salaries for all employees. International subsidiaries of Covestro will implement individual measures for cost reduction on a country-specific level.
“I am proud of our employees and trust their willingness to make this important solidarity contribution”, said CEO Dr. Markus Steilemann, “Together, we will successfully navigate the company through these exceptional economic circumstances.”
CFO and Labor Director, Dr. Thomas Toepfer, added: “We are aware that these measures mean cuts for everyone. It goes without saying that we distribute the burdens appropriately and that nobody is asked to contribute more than is required.”
The salary reduction increases in percentage terms across all salary levels. The company’s Board of Management as well as its Supervisory Board will take a salary cut of 15 percent, which represents a higher percentage than the employees involved. These measures are planned for a period of six months starting on June 1, 2020, and will serve as a supplement to the previously planned cost-saving measures.
Strategic focus topics remain in view
Despite the current cost-saving measures, Covestro continues to consistently drive forward its strategic focus topics sustainability and innovation. In particular, the company focuses on transitioning to a circular economy in order to eliminate the use of fossil resources to the greatest possible extent. Dr. Markus Steilemann, CEO of Covestro, will provide additional details about the strategic program to embed circularity in all of the company’s activities tomorrow on May 26, 2020.
“I am proud of our employees and trust their willingness to make this important solidarity contribution. Together, we will successfully navigate the company through these exceptional economic circumstances.”
"We are aware that these measures mean cuts for everyone. It goes without saying that we distribute the burdens appropriately and that nobody is asked to contribute more than is required.”
With 2019 sales of EUR 12.4 billion, Covestro is among the world’s largest polymer companies. Business activities are focused on the manufacture of high-tech polymer materials and the development of innovative solutions for products used in many areas of daily life. The main segments served are the automotive, construction, wood processing and furniture, and electrical and electronics industries. Other sectors include sports and leisure, cosmetics, health and the chemical industry itself. Covestro has 30 production sites worldwide and employed approximately 17,200 people (calculated as full-time equivalents) at the end of 2019.
This press release may contain certain forward-looking statements that are based on current assumptions and forecasts issued by the management of Covestro AG. Various known and unknown risks, uncertainties and other factors could lead to material differences between the actual future results, financial situation, development or performance of the company and the estimates given here. These factors include those discussed in Covestro’s public reports, which are available at www.covestro.com. The company assumes no liability whatsoever to update these forward-looking statements or to conform them to future events or developments.