Leuna – The insolvent Leuna Polyamid GmbH is ceasing production at the end of September and closing the plant in October. The search for investors yielded no binding offers, as high energy and raw material costs, demands for advance payments, and price pressure from China strained the company’s finances. Around 400 employees will lose their jobs. Because the complex facilities require a safe shutdown, the State Administrative Office ordered a controlled cessation of operations on September 10. An unplanned shutdown could also cause safety issues within the chemical park.
Leuna Polyamid fails a few months after the rescue
The company only took over operations on April 1st. InfraLeuna and Leuna-Harze founded a joint rescue company after the insolvency of Domo Caproleuna. But just two and a half months later, the new company also filed for self-administration bankruptcy. The rescue therefore only lasted a few weeks.
Image: Shutterstock
Management cites several economic factors behind the failure. According to the company, raw material prices surged, while some suppliers demanded payment in advance. Additionally, high energy costs and low-cost competition from China weighed on the business. Consequently, despite ongoing discussions, no investor submitted a binding offer for Leuna Polyamid.
Authority mandates safe plant shutdown
The plant will continue producing ordered goods for contract customers until the end of September. Operations to wind down the facility are scheduled to begin in October, coinciding with the opening of insolvency proceedings. According to the company, the shutdown process will take 15 to 20 days. However, the plant cannot simply switch off its facilities.
The State Administrative Office therefore requires a detailed plan for a safe shutdown. Furthermore, the company must ensure the availability of sufficient qualified personnel and the necessary technical infrastructure. These requirements stem from the complex nature of the facilities and the presence of hazardous substances within the integrated production network; an uncontrolled failure could therefore lead to significant safety issues.
Closure Affects Entire Leuna Chemical Site
The consequences extend beyond the approximately 400 jobs involved. For years, Leuna Polyamid had been integrated into the site’s material and energy network. Consequently, InfraLeuna anticipates an impact on several companies along the value chain. Among other things, the volumes of ammonia, benzene, sulfur, propylene, hydrogen, oxygen, and nitrogen will change.
The insolvency of the predecessor company had already incurred significant public costs. At that time, the state of Saxony-Anhalt funded emergency operations to the tune of around 79.5 million euros because an immediate shutdown could not be safely executed. Now, however, that interim solution is also coming to an end. As a result, the Central German chemical hub is losing another major production component at a time when the industry is grappling with high costs and weak demand.
Author: Blackout News
Sources: Kunststoff Web (11.09.26) – ICIS (10.09.26) – Frankfurter Rundschau (09.09.26)