Domo Chemicals has announced plans to close one of its three production lines for biaxally oriented PA films (BOPA) at its Leuna site ,with effect from August. No other businesses at the site in eastern German complex will be affected. Talks with the workforce are said to be in progress.

The nylon specialist, which acquired Solvay’s European PA 6.6 business at the beginning of 2020, pointed to global overcapacity for the films as the motivation for the closure plans. It did not disclose capacity figures for Leuna.

Despite the overcapacity situation, Domo stressed that as an integral part of supply chains for the pharmaceuticals, medical and food packaging industries, BOPA films are a key asset and particularly essential during the Covid-19 pandemic.

Explaining management’s decision, Attilio Annoni, managing director of Domo Film Solutions, which spans activities at Leuna and Cfp Flexible Packaging in Italy, said that “in these extraordinary circumstances of high business volatility, we have opted to continue to focus on quality and flexibility through cautious and smart asset management, rather than reacting with short-term volume strategies.”

Despite the current market slowdown, which is affecting the automotive and other industrial segments supplied by Domo’s Polymers & Intermediates and Engineering Materials business units, the company said it remains on course to achieve its global growth objectives, including the continued development of sustainable solutions for customers.