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Evonik Industries
Evonik Industries

Chemicals / Specialty chemicals


Risks
1. Regulatory Risk: Evonik Industries AG is subject to increasing government regulation. For example, in the EU, the revised Reach Regulation requires companies that manufacture, market, or use chemicals to provide extensive information on the substances they use. Failure to comply with regulations could result in hefty fines and sanctions.

2. Decreasing Utility Demand: The demand for Evonik Industries’ utility products, such as agricultural fertilisers, hydrogen peroxide, or specialty chemicals, is driven by the health of the economy. A downturn could lead to decreased demand and consequently, lower sales.

3. Supply Chain Risk: The constantly changing global trade landscape creates unpredictable risks from suppliers, logistics, and other stakeholders in the supply chain. This could lead to shortages and delays that may affect the quality and quantity of final product delivered.

4. Increasing Competition: As global competition intensifies, Evonik Industries AG could face increasing pressure from competitors offering products at lower prices. Furthermore, aggressive pricing policies by competitors could reduce its margins substantially.

5. Currency Risk: Evonik Industries AG is exposed to currency fluctuations as it conducts business in both domestic and international markets. Exchange rate changes can lead to losses due to exchange rate differences.

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