DOMO Chemicals Files for Insolvency for German Subsidiaries
The German subsidiaries of the Belgian chemical company DOMO Chemicals - DOMO Chemicals, DOMO Caproleuna and DOMO Engineering Plastics - have filed for insolvency.
The three German companies concerned belong to DOMO Chemicals, a family-run group of companies headquartered in Ghent, Belgium. The group manufactures and markets polymers, engineering plastics and high-performance fibers worldwide for customers in the automotive industry, for consumer and industrial goods as well as electrical engineering and electronics. According to the company, the companies in the DOMO Group are suffering from years of weak demand in the European chemical industry. This is compounded by high energy prices and a sharp rise in imports of polyamide resin from non-EU countries, particularly China. The management has already reacted in 2024 and initiated a restructuring. After talks on further financing failed at short notice, the three German companies had to file for insolvency.
The insolvency applications relate exclusively to the three German companies of the DOMO Group, i.e. DOMO Chemicals in Leuna with around 35 employees, DOMO Caproleuna in Leuna with around 480 employees and DOMO Engineering Plastics in Premnitz with around 70 employees.
The competent local court in Halle (Saale) appointed Lucas F. Flöther, name partner of the law firm Flöther & Wissing, as provisional insolvency administrator. Flöther plans to continue business operations and is reviewing the restructuring options. "Day-to-day business will continue at all locations, production and deliveries to customers will run without interruption," emphasized the provisional insolvency administrator. Flöther and his team are already on site and will inform around 585 employees about the situation this morning. Their wages and salaries are secured for three months through the insolvency substitute benefits. "This gives us an important financial breathing space," says Flöther.
Over the next few weeks, the provisional insolvency administrator, in consultation with the creditors and the management, will gain a precise picture of the economic situation and examine the restructuring options. An investor solution or an agreement with the creditors are conceivable. Which path is most promising will become clear in the coming months. "The German companies in the DOMO Group are among the technology leaders in their sector, as well as having a very capable workforce and a top-class customer base," says Flöther. "These are basically not bad prerequisites, even if the market is naturally difficult for chemical companies."
