Dürr AG Considers Sale of Environmental Technology Business Amid Strategic Reorganization

German machinery manufacturer Dürr AG is exploring strategic options for its environmental technology business, including a potential sale of its air pollution control and sound insulation systems. These units, part of the Clean Technology Systems (CTS) division, generated €430 million in revenue in 2023.

The Board of Management informed the Supervisory Board of the decision to review strategic options for the environmental technology business. However, the battery production technology business, also part of the CTS division, is not included in this review and will remain part of the company's core operations.

Why this matters: Dürr's potential sale of its environmental technology business could have significant implications for the industry and the environment. This move could lead to changes in the market dynamics and potentially impact the company's ability to contribute to reducing air pollution.

In a significant restructuring move, Dürr AG will combine its Paint and Final Assembly Systems and Application Technology divisions into a new Automotive division. This reorganization aims to strengthen competitiveness and systems expertise. The new division, which generated around €2 billion in sales in 2023, will be effective from the beginning of 2025.

Additionally, the battery production technology business will be transferred to the Industrial Automation Systems division, which will be renamed Industrial Automation. The Woodworking Machinery and Systems division will be renamed Woodworking, with no changes to its operations.

Dr. Jochen Weyrauch, CEO of Dürr AG, emphasized the importance of these changes, stating, "The simplification of the corporate structure is the next logical step in executing our Group strategy. By merging our automotive activities, we will be even better equipped to seamlessly develop comprehensive integrated solutions in paint technology, serve our customers from a single source, and process complex system orders even more efficiently in the future."

Dürr AG's Board of Management has confirmed the targets for the current fiscal year and mid-cycle targets. The company continues to focus on strengthening its core business and exploring growth opportunities through strategic investments.

Dürr AG is actively reviewing strategic options for its environmental technology business, potentially leading to a sale of its air pollution control and sound insulation systems. Concurrently, the company is undergoing significant organizational changes to enhance its competitiveness and operational efficiency.

Key Takeaways

• Dürr AG reviews strategic options for environmental technology business, including potential sale.
• Battery production technology business remains part of core operations.
• New Automotive division combines Paint and Final Assembly Systems and Application Technology.
• Industrial Automation Systems division renamed, absorbs battery production technology.
• Dürr AG confirms fiscal year and mid-cycle targets, focuses on core business and growth opportunities.