Plant closures: Domo’s three German subsidiaries file for insolvency; Invista to close nylon sites in UK/US

Polyamide maker Domo Chemical’s three German sites have been shut down with immediate effect and put into emergency operation. This is after negotiations with the creditors for a short-term mass loan failed.

The insolvency proceedings concern Domo Chemicals GmbH (Leuna, approx. 35 employees), Domo Caproleuna GmbH (Leuna, approx. 480 employees) and Domo Engineering Plastics GmbH (Premnitz, approx. 70 employees). Other companies in the Domo Group are not affected.

Administrator Prof. Dr. Lucas F. Flöther said, "The account balance of the insolvent companies is close to zero and the prospect of urgently needed interim financing has been dashed.” Flöther informed the employees and the relevant authorities immediately after the failure of the financing talks.

The consequences for the plant and its liquidation cannot yet be assessed. "We are supporting the management in shutting down the plants safely. The big question is whether they can then be restarted and used again at some point without damage," says Flöther. "That would certainly be a disaster for the plants and the chemical site, but also for the creditors."

Domo Caproleuna manufactures organic base products (e.g. caprolactam, phenol, acetone) and polyamide 6 as its main product, also known as nylon 6. Polyamide 6 is a versatile engineering plastic characterized by high strength, good toughness and very good processability. It is used in the automotive industry, the electrical and electronics sector and in high-quality consumer goods for lightweight, durable and high-performance components.

Domo Engineering Plastics in Premnitz also produces polyamide 6 and compounds, i.e. engineering plastics in which polyamide 6 is specifically combined with additives. This allows properties such as strength, heat resistance, rigidity or impact resistance to be precisely adjusted. Such compounds are mainly used in the automotive, electrical and consumer goods industries.

In other news, US-based Invista has announced closing its precision machine shop in Martinsville, Virginia; discontinuing production at its Gloucester, England site; transitioning operations to its Kingston, Canada facility, which will continue to serve customers in North America and Europe; and continuing to explore various investment opportunities for expanding capabilities at select advantaged sites, including its Anlon site in Shanghai, China.

Invista produces the chemical intermediates, polymers and fibres that go into materials like nylon and polypropylene, which are then used in a vast range of products.

Invista says its set of proposed strategic actions are intended to strengthen its global operating footprint and position the business for long-term competitiveness.

 “We want to recognise and thank the employees, contractors, and partners across these sites who have contributed to Invista’s success over many years,” said Brook Vickery, President/CEO. “These proposals are not a reflection of their performance or commitment, but rather a response to today’s market environment and the need to align our operations with where we see long-term opportunity.”

As part of these proposed actions, Invista is focusing investment in key facilities and capabilities that will support growth, enhance competitiveness, and strengthen operational resilience. These efforts reflect the company’s commitment to being a stable and reliable business that serves customers around the world.

In the coming weeks, it adds it will engage in required employee consultations and work closely with customers to support potential orderly product transitions.

Approximately 150 roles across the affected locations may potentially be impacted should these proposals move forward. If enacted, all impacted employees will be eligible for severance benefits.

“Our top priority now is ensuring the safe, stable operation of our facilities as we work through the changes necessary to evaluate and, if approved, implement these proposals,” added Vickery.

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