- Saxony-Anhalt orders continued operation of Leuna facilities for safety reasons.
- Insolvency proceedings affect three DOMO entities with 585 employees.
- Federal Employment Agency secures wages until March.
- Production at Premnitz site continues.
Continued Operation Ordered
The state of Saxony-Anhalt has mandated the continued minimal operation of DOMO Chemicals' Leuna facilities due to public safety concerns. An immediate shutdown is deemed unsafe under current weather conditions, necessitating ongoing operations to prevent health and environmental risks.
Insolvency Proceedings
DOMO Chemicals' three German subsidiaries filed for insolvency on December 25. The operational situation worsened as the companies lack funds to pay for essential supplies, risking production halts. The state initiated a "substitute performance" to maintain operations after failed negotiations for bridge financing.
Employee Wages Secured
The Federal Employment Agency has approved advance financing of insolvency benefits, ensuring timely wage payments for approximately 585 employees until the end of March. This measure applies to all three insolvent entities, including DOMO Chemicals GmbH, DOMO Caproleuna GmbH, and DOMO Engineering Plastics GmbH.
Future Prospects
Prof. Dr. Lucas F. Flöther, the preliminary insolvency administrator, noted that the state's decision provides time to explore long-term stabilization options, including potential third-party takeovers. The outcome of these proceedings remains uncertain, but continued production at reduced capacity offers a temporary reprieve.
