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OQ Chemicals Implements Cost-Saving Measures for Competitiveness

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






 


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Reach us if you have any concerns regarding cost management accounting issues in your organization.


SANKALP WADHWA

Partner, Chandra Wadhwa & Co. (Cost Accountants) | B.Com, FCMA, ACA, DISA | Certified SAP-CO Consultant | Executive Program on Management and Finance (IIM, Ahmedabad)


Address: 1305 & 1306, Vijaya Building, 17, Barakhamba Road, New Delhi - 110001, India Mail: sankalp.wadhwa@cwcindia.in

Tel: +91-8800018190, +91-7503703599.

Website: www.cwcindia.in





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