Covestro to Fully Reimburse Employees for 100% of COVID-19 Salary Reductions

Faster-than-Expected Market Recovery, Continued Performance Improvement Expected in Q4
Full Refund of December Salary Wage Cuts

[Asia Economy Reporter Hwang Yoon-joo] Covestro, a German chemical materials company, has fully reimbursed the wages that were temporarily reduced due to the COVID-19 pandemic in the December payroll.

The wage reductions, which were implemented for six months starting in July, were proposed by the labor union to the company as a measure for sharing the hardships caused by the COVID-19 pandemic and ensuring employment stability. Employees worldwide, including those at the German headquarters, Europe, the United States, and Asia-Pacific, voluntarily participated. Most employees at the Korean branch also took part, with wage cuts of up to 15% by rank over the six months.

The global market, which had been struggling due to the impact of COVID-19, is recovering faster than expected, and demand continues to increase steadily. Performance improvement is expected in the fourth quarter, and the situation is projected to improve further next year due to the global economic recovery.

Covestro has also revised its 2020 guidance upward, supported by the faster-than-expected global recovery. Earnings before interest, taxes, depreciation, and amortization (EBITDA) are expected to be between 1.44 billion and 1.5 billion euros (approximately 2.0212 trillion KRW), and free operating cash flow (FOCF) is forecasted to be between 400 million and 550 million euros.

Meanwhile, Covestro's main products include polycarbonate, polyurethane, raw materials for coatings, paints, and adhesives, specialty films, semiconductor and advanced display materials. The company supplies innovative products to leading domestic and international companies and operates a Polymer Technology Development Center in Yongin, Gyeonggi Province, which consists of a showroom, research labs, and meeting rooms to exhibit new material products and provide optimized solutions to customers.

This content was produced with the assistance of AI translation services.