FRANKFURT, (Germany): German chemical maker Covestro unveiled Tuesday a 400-million-euro ($430-million) cost-cutting plan, a day after announcing progress in talks about a mammoth takeover by Emirati national energy firm ADNOC.

The annual savings are to be achieved globally by the end of 2028, by cutting material and personnel costs, and 190 million euros of the total would be in Germany, the group said. But the Leverkusen-based company also said it had agreed with staff representatives not to make any compulsory redundancies at its German sites until the end of 2032.

“The last few years have been challenging for the chemical industry and for Covestro,” said CEO Markus Steilemann, adding that the cost-cutting programme would help secure the group’s “leading position in the global market”.