Leuna chemical plant saved – 436 jobs will be retained

“This was a last-minute rescue in a procedure that was unusual in every respect,” explained Flöther, who has been running the business since the end of December. Because there was no money in the company to finance ongoing operations, the chemical plant would have had to be shut down in January under normal circumstances. However, this was not possible – in winter temperatures the systems could not be shut down safely without environmental risks.

39 redundancies for operational reasons

The state of Saxony-Anhalt had financed emergency operations for security reasons. Domo mainly produces plastic, which is further processed in the automotive industry as well as in the electrical and electronics sector, among other things.

The responsible court has now opened insolvency proceedings for Domo Chemicals’ three German companies. The chemical company based in Ghent, Belgium, filed for bankruptcy for its three German subsidiaries in Saxony-Anhalt and Brandenburg at the end of last year.

The new company in Leuna will now fully finance the business operations. The company will now operate as Leuna Polyamid GmbH. According to the information, the acquiring company is taking over the location and property in Leuna as well as 436 of the approximately 500 employees. Some of the workforce reductions will occur through self-terminations or the expiration of fixed-term employment contracts. 39 employees had to be laid off for operational reasons.

What’s next in Brandenburg?

Domo Engineering Plastics GmbH in Brandenburg is not part of the fallback solution. The Premnitz-based company with around 70 employees will be continued in the insolvency proceedings by the insolvency administrator until further notice. Investors are being sought.

The third subsidiary, Domo Chemicals GmbH in Leuna, reportedly has no operational business operations. The administrative functions of the three German companies are bundled there, it was said. The company employs around 35 people. “After a transition phase, the company will have to initiate the shutdown in April.”