2
German production sites
Future-proofing a Specialist Chemical Organization Following a Restructure
Following a restructuring, a mid-sized chemical company faced the challenge of managing transferred products and meeting new site requirements. Working with the client, we restructured two German sites to achieve self-sustained competitiveness. The transformation delivered €6 million in annual savings while building critical capabilities for future growth.
Industry: Chemicals
Industry: Private Equity
Service: Manufacturing
Service: Operational Excellence
Service: Operations Strategy and Transformation
Our Client
This is a mid-sized company in the chemical sector owned by a private equity firm. The company underwent Chapter 11 restructuring, with its product portfolio and services impacted as part of that process.
The company operated two sites in Germany. One focused on a particular product line, transferred following the restructure. The other site, located on a chemical park, needed to significantly increase throughput
50-90kt
Annual production capacity
€76.8M
Addressable cost base
The Challenge
Post-restructuring operations demanded fundamental transformation to ensure competitive viability and potential carve-out readiness.
- Fragmented organization with inefficiencies: Six reporting levels with small spans of control, a high overhead rate of ~60%, and fragmented functions—where only 26 out of 80 expert functions used >50% of their resources for core tasks
- Low maintenance productivity: Wrench time averaging just 29-37% compared to 50-60% benchmarks, with 65% ad-hoc orders, inefficient work order management processes and missing digital tools for coordination
- Inflexible cost structure: Fixed costs requiring 15%+ reduction for competitiveness, capacities not fully utilized and poorly balanced, plus high contractor dependency without sufficient management systems
Real Results Achieved Together
The comprehensive operational transformation program addressed organizational structure, maintenance efficiency and cost competitiveness across both sites. Working alongside the client, we implemented sustainable improvements that positioned the sites for self-sustained operations.
€6M
Annual cost savings achieved
50%
Target wrench time improvement
€1.3M
Energy efficiency savings
Transformation Impact
- Established stand-alone capable organization with merged responsibilities and focused functions
- Implemented adaptive operating model with flexible shift structures aligned to production volumes
- Deployed reliability management system with criticality assessments and risk-based maintenance strategies
Our Approach
The transformation encompassed organizational restructuring, process improvements and performance management across all site functions. We conducted span of control analysis, activity analyses and maintenance assessments to identify improvement opportunities.
The team developed eight improvement projects including organizational realignment following Schumacher methodology, comprehensive work order management implementation and energy efficiency measures. Working directly with site leadership teams, we created detailed project charters for each initiative, establishing clear approaches, timelines and risk mitigation strategies.
The implementation included establishing new reliability management routines, deploying fixed-term contracts for maintenance partners and streamlining lab processes by applying lean principles. Knowledge transfer occurred through coaching sessions, training programs and by embedding new performance management systems with closed-loop improvement processes.
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Facing Similar Chemical Industry Challenges?
- Struggling with post-restructuring operations and inflexible cost structures
- Transforming fragmented organizations into lean, self-sustained operations
- Building operational excellence through reliability management and efficiency gains
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