State Steps in to Fund Domo’s Insolvent German Chemical Site

Germany’s state of Saxony-Anhalt will temporarily finance Domo Chemicals GmbH’s insolvent plastics production site in Leuna to prevent a potentially damaging shutdown.

The plant, which makes plastics used in the automotive and construction sectors, will keep running at around 40% of capacity until the end of March, Christof Günther, managing director of chemical park operator InfraLeuna GmbH said Thursday, after helping to negotiate the financial lifeline with insolvency administrator Flöther & Wissing and the eastern German state.