DOMO Chemicals is among the DOMO Group subsidiaries filing for insolvency – an outcome attributed to high energy prices, low demand, and ongoing imports from non-EU countries.
Headquartered in Ghent, Belgium, DOMO Group’s subsidiary companies manufacture and sell polymers, engineering plastics, and high-performance plastics for the consumer and industrial goods sectors, among others.
The company reports that high energy costs, rising polyamide resin imports from outside the EU, and ‘persistently weak’ demand in Europe’s chemicals sector have impacted its businesses.
Although the management team started a restructuring process in 2024, talks over further short-term financing have since broken down – leaving DOMO Chemicals, DOMO Caproleuna, and DOMO Engineering Plastics to file for insolvency.
“The German companies of the DOMO Group are among the technology leaders in their field,” said Prof. Dr. Lucas F. Flöther, partner at the law firm Flöther & Wissing and the preliminary insolvency administrator. “In addition, they have a highly capable workforce and a strong, reputable customer base.
“These are not bad starting conditions, even though the market environment for chemical companies is undoubtedly challenging.
“Day-to-day operations are continuing at all locations. Manufacturing and customer deliveries remain uninterrupted.”
Flöther plans to continue business operations and will work with creditors and company management to gauge the financial situation and consider restructuring options – securing an investor, reaching a settlement with creditors, or any other available routes. Insolvency benefits will secure employees’ wages and salaries for the next three months.
In similar news, Klöckner Pentaplast filed for bankruptcy in the United States back in November. After facing increased demand during the COVID-19 pandemic, spiking costs for raw material and energy, and compressed profit margins, Klöckner has initiated the prepackaged Chapter 11 process in the US Bankruptcy Court for the Southern District of Texas.
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