With Altana and the German chemical industry, it’s almost like Asterix & Obelix versus the Romans. While the entire sector in Germany groans under global demand weakness, structural problems, and adverse conditions, the specialty chemicals company from Wesel in North Rhine-Westphalia regularly posts impressive figures.

This is also true for the period from January to June 2025. Altana largely maintained revenue and operating profit at the previous year’s level, while some competitors faced double-digit percentage declines. Altana achieved an operating margin based on Ebitda of nearly 18%. Large chemical companies are typically this profitable only in good times.

Although CFO Stefan Genten is quick to acknowledge in the interview that Altana cannot completely decouple from the market – he cannot hide a certain pride. But what is Altana’s recipe for success – and what does the chemical company, owned by the investment firm SKion, do differently from the rest of the industry? „We are a true specialty chemicals company – focusing on close customer relationships, on-site presence, and genuine product innovation,“ says Genten.

In addition, „we invest significantly more than the industry average in research and development (R&D)“ – regardless of the challenging market situation. In the first half of the year alone, Altana invested 109 million euros in R&D, which corresponds to 7% of the company’s revenue. In the industry, the average is about 4%, Genten notes.

Another differentiating factor is Altana’s strict focus on sustainability – both in product development and in production processes. „Sustainability is today more than ever a business model. It is a key driver of our innovation,“ says the CFO. This pays off, as sustainable products are sold based on added value rather than cost. Close customer relationships, on-site production, and product innovation through in-house research are proven strategies, and Altana implements them consistently – and that makes the difference.

Because Altana focuses on quality not quantity, production is naturally less energy-intensive than that of competitors. In times when high energy costs, especially electricity prices, are pushing many chemical companies out of the market, this is a real advantage. Moreover, over the years Altana has expanded beyond its German home market without turning its back on it. Today, roughly one-third of revenue comes from each of the Americas, Asia, and Europe. The largest individual markets are the USA (18%), China (18%), and Germany (10%), with investments made equally across all three regions.

The gradual withdrawal of the basic chemicals industry from Europe nevertheless gives Genten pause. „It is also important for us that Europe continues to have a basic chemicals sector, because we source and produce in local markets for local markets,“ the manager explains, referring to the resilience of supply chains. He warns against taking the issue of deindustrialisation lightly. Innovation is of little use if industrial demand no longer exists, he argues.

However, Genten is optimistic that the situation will turn around, as the chemicals industry is characterised by high adaptability. He is also certain that "there can be no sustainability transformation without chemistry.“ This insight now needs to reach Brussels as well. „Much of the EU regulation is certainly well-intentioned. But reporting obligations that overshoot the mark provide no additional benefit,“ the executive says.

The topics related to the transformation – battery storage, e-mobility, and electrification – are genuine growth drivers for Altana. The Elantas business unit, which produces insulating materials for the electrical industry, grew organically by 7% in the first half of the year. In this segment, Altana claims the lead in innovation. In contrast, revenues in the other three segments – Byk (additives), Eckart (pigments), and Actega (specialty coatings) – were slightly lower in the first half of the year.

Ultimately, Altana’s success is based on the clarity of its strategy. This includes, in addition to the high R&D ratio, a clear acquisition strategy. „Our acquisitions have always been about strengthening our specialties. It has never been just about size,“ Genten notes. While other chemical companies have also moved toward specialties, these firms today operate two business models under one corporate roof – the research-intensive innovation model and the capital-intensive model focused on volume and cost leadership. Whether two such fundamentally different business models can be run in parallel is a question each company must answer for itself, says Genten.