Degussa AG
Every Day & Everywhere
from Trust the Leaders Issue 16, Summer 2006
As the world’s market leader in specialty chemicals and one of the top 10 chemical companies globally, Degussa AG approaches its business purpose as “creating essentials” — with its products and system solutions, Degussa creates things that are valuable and essential for the success of its customers.
Headquartered in Düsseldorf, Germany, Degussa employs 44,000 people worldwide, and in fiscal 2005, generated sales of over €11.8 billion, almost three-quarters of which originated outside Germany. Degussa manufactures its products where its customers are located, and thus operates large production facilities in over 50 countries. Degussa has 120 production plants and sales and marketing offices throughout North America; the continent accounts for 20 percent of Degussa sales worldwide.
A Degussa-Filled Day
Degussa’s diverse product line reflects its motto that “Everybody benefits from a Degussa product — every day and everywhere.” As Degussa tells it, this approach begins in the morning, with such products as toothpaste, shower gel or shampoo. “Green” tires containing Degussa’s silica and silane components make the drive to work safer, cheaper and eco-friendlier. In the office, the paper used has been bleached without chlorine, thanks to Degussa products. The company’s specialty polymers give skiers and snowboarders the edge, and pharmaceutical products based on special Degussa molecules promote good health.
Indeed, North America is a key market for Degussa’s line of AEROSIL® fumed silica products, which are used in everything from eye makeup to pesticides.
Corporate Structure
Degussa pools its operating activities into 12 business units, each of which is allocated to one of its reporting segments: Technology Specialties, Consumer Solutions and Specialty Materials. The importance of the business units is expressed in the company’s leadership philosophy, “As decentrally as possible, as centrally as necessary,” with the business units acting as “entrepreneurs” within the enterprise and reporting directly to the Group Management Board. These units are supported in turn by service units that are also managed entrepreneurially, competing with third parties to offer their services in areas such as human resources, accounting, information technology and site infrastructure. The Corporate Center in Düsseldorf provides strategic management functions.
Ingredients that can help save gas: Degussa is the only manufacturer worldwide to offer a single source for all three reinforcing components for tire compounds. Customized carbon blacks contribute to road grip, abrasion resistance and rolling resistance,
SGR and Degussa
Intellectual property — patents, trademarks and the like — forms an integral part of Degussa’s business. “Degussa as a strongly R&D-based company develops strategies to create, utilize and commercialize the intellectual property essential to its business,” explains Dr. Matthias Schaefer, head of Degussa’s Intellectual Property Management Service Center. “Intellectual property is no longer solely used to protect the creativity of the company’s employees against plagiarism; in addition to the protection of technologies, the protection of markets is a foremost concern today. The consequences of this development are more than obvious; for instance, in M&A projects a substantial portion of the price paid is often for intangibles such as intellectual property.”
SGR attorneys have represented Degussa and its predecessor companies for more than 30 years in connection with intellectual-property matters, including patents, designs, trademarks, copyrights and trade secrets. SGR lawyers have counseled Degussa in connection with infringement and non-infringement opinions, validity and invalidity opinions, product clearances, and negotiations relating to contested intellectual property matters. The representation has included matters before the U.S. Patent and Trademark Office, the International Trade Commission and the federal courts.
Dr. Ralf Anselmann, Head of Research of the Degussa Science to Business Center Nanotronics in Marl, Germany, is working with his team on affordable alternatives based on extremely fine particles made from the semi-conductor material silicon (one of the in
Degussa’s Commitment to the Future
Degussa is creating the foundation for profitable growth through its strong commitment to research and development. Approximately 2,300 of Degussa’s employees work in research and development at over 35 research locations worldwide, and the company cooperates with more than 200 universities as a means of swiftly transferring scientific knowledge into the company. Indeed, some 20 percent of Degussa’s sales are based on products and technologies that are less than five years old. The Science to Business Center Nanotronics (developing nanomaterials-based system solutions for the electronics industry) and the new Science to Business Center Bio (white biotechnology) are the latest flagships of its research operations. Degussa is especially committed to promoting and advancing science, with its educational, cultural and science projects all being handled by the Degussa Foundation.
In addition, Degussa reflects a commitment to training, as 600 young people began apprenticeships with the company in September 2005. Degussa also gave training places to almost 60 young people on behalf of other companies. The company spends approximately €50 million on training every year.
Degussa brought its recent “start-up” phase (2001-2004) to a successful close following the merger of Degussa-Hüls and SKW Trostberg. Degussa has now embarked on the second phase in its development, focusing on ambitious growth and profitability targets. Its performance enhancement program “Degussa 2008” has been designed with this objective in mind, targeting a significant improvement in operating profits of €270 million by 2008.
In the future, Degussa want to be more than just the biggest specialty-chemicals company — it also intends to continue to rank among the best.
