The Germany-based caprolactam (capro) and polyamides producer LEUNA-Polyamid has filed for insolvency. The move comes less than three months after the business was acquired by its new owners from DOMO. Having only been formed in April, when chemical park operator InfraLeuna and epoxy producer Leuna-Harze purchased the company from DOMO Chemical, it has now run into liquidity issues.
Domo
LEUNA-Polyamid files for insolvency
The joint venture consortium originally acquired the business to maintain the cohesion of the Leuna park following DOMO Chemical’s insolvency filing for three German subsidiaries. However, the economic environment shifts caused by the US-Iran conflict have resulted in prices for inputs including sulphur benzene and propylene increasing by 60-100%, resulting in sourcing issues.
“The supply of sulphur, which is essential for production, was not ensured to a sufficient extent, which further restricted the utilisation of the production facilities,” said Martin Naundorf, Managing Director. “This led to a significantly increased liquidity requirement in the operating business.”
He continued, “We will use the time under the umbrella of the insolvency process to improve our structure further and look for additional partners for the business in Leuna.”
Existing orders will be met, while new orders will be reviewed during the insolvency proceedings.
