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The company has been given permission to continue operating in the short-term due to the risks of an uncontrolled shut down.
08:07, Mon, Jan 26, 2026 Updated: 08:09, Mon, Jan 26, 2026
The Leuna refinery and chemical industrial complex will continue to operate for now (Image: Bloomberg via Getty Images)
Insolvency talks at a German chemical plant have put nearly 600 jobs at risk. DOMO Chemicals has informed its sites in the country that they can continue operating at a minimal level as discussions take place over the company’s future.
The company currently has two production sites in Leuna and Premnitz and one sales office in Freiburg. The Leuna site has been in operation for more than 100 years, producing fertilisers and other products based on ammonium sulfate. DOMO produces more than 1,000 tons of this by-product of caprolactam synthesis every day, according to its website.
The company operates three sites around Germany (Image: Bloomberg via Getty Images)
Meanwhile, at its Premnitz plant, which employs around 80 people, the company produces polyamide 6 virgin resins and highly specialized PA 6 compounds under the brand names DOMAMID and Technyl.
While negotiations for the future of the company take place, the state of Saxony-Anhalt has granted the continued operation of the production facilities in Leuna on public safety grounds.
Currently, weather conditions mean that an immediate shutdown of operations is currently off the table due the risks associated with an uncontrolled shutdown.
Prof. Dr Lucas F. Flöther, Court-Appointed Preliminary Insolvency Administrator from the Law Firm Flöther & Wissing said: “It is very good news that the state has enabled continued production – albeit at reduced capacity – for the time being.
“What this means for the further course of the insolvency proceedings remains to be seen.
“What is clear, however, is that we have gained valuable time to examine whether and under what conditions a long-term stabilisation might be feasible.”
The Leuna refinery and chemical industrial complexcurrently employs more than 500 people (Image: Bloomberg via Getty Images)
The three German subsidiaries of the DOMO Chemicals Group filed for insolvency on 25 December.
The operational situation deteriorated further last week: to ensure the safety of production processes, a constant supply of energy, certain gases, and cooling agents such as liquid nitrogen is required.
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As the companies currently lack the funds to pay suppliers, there was a risk of deliveries being halted.
Meanwhile, the Federal Employment Agency has approved the advance financing of insolvency benefits for the approximately 585 employees, ensuring that their wages and salaries can continue to be paid on time.
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