DOMO Chemicals’ German subsidiaries enter insolvency as administrator explores restructuring options amid weak demand, high energy costs, and import pressure.
Three German subsidiaries of the Belgian chemical group DOMO Chemicals-DOMO Chemicals GmbH, DOMO Caproleuna GmbH, and DOMO Engineering Plastics GmbH-have formally entered insolvency proceedings under German law. The responsible local court has appointed Lucas F. Flöther, Professor and named partner at the law firm Flöther & Wissing, as the preliminary insolvency administrator. His immediate priority is to stabilise operations while examining all viable restructuring pathways for the affected businesses.
According to Flöther, business activities across all sites are continuing without disruption. Production facilities remain operational, and customer deliveries are being fulfilled as scheduled. He stressed that maintaining continuity is a central objective during the preliminary phase of insolvency. Together with his restructuring team, Flöther has already begun on-site assessments and held direct discussions with employees to provide transparency about the situation. Approximately 585 staff members across the three German entities have been informed, with reassurance that wages and salaries are secured for the next three months through statutory insolvency benefits. This temporary financial protection is expected to provide essential breathing space as restructuring plans are evaluated.
In the weeks ahead, Flöther will collaborate closely with creditors, financial stakeholders, and the existing management teams to gain a comprehensive understanding of the companies’ financial positions. This process will include a detailed review of liquidity, cost structures, order books, and long-term market prospects. Based on these findings, several restructuring options will be assessed. Potential solutions may involve attracting a strategic investor, negotiating a debt settlement with creditors, or implementing operational and structural adjustments to restore profitability. A clearer direction is expected to emerge over the coming months once these analyses are completed.
Despite the current financial distress, Flöther highlighted the fundamental strengths of the German DOMO entities. He noted that they are recognised technology leaders within their respective market segments and benefit from a skilled and experienced workforce. Additionally, the companies serve a broad and reputable international customer base, which he described as a solid foundation for any recovery effort. While acknowledging that the broader chemical industry is facing significant headwinds, Flöther emphasised that these strengths provide a credible starting point for a successful restructuring.
The parent DOMO Group, headquartered in Ghent, produces and supplies polymers, engineering plastics, and high-performance fibres to customers in the automotive, consumer goods, industrial manufacturing, and electrical and electronics sectors worldwide. However, the group has been under pressure from prolonged weakness in European chemical markets. Persistently high energy costs across the continent have eroded margins, while increasing imports of polyamide resins from non-EU countries-particularly China—have intensified competitive pressure.
In response to these challenges, DOMO’s management initiated a restructuring programme in 2024 aimed at improving efficiency and financial resilience. Despite these efforts, negotiations for additional short-term financing recently failed, leaving the German subsidiaries with no alternative but to seek insolvency protection.
It is important to note that the insolvency proceedings apply solely to the three German entities. These include DOMO Chemicals GmbH in Leuna, employing around 35 people; DOMO Caproleuna GmbH, also located in Leuna, with approximately 480 employees; and DOMO Engineering Plastics GmbH in Premnitz, which employs about 70 staff. Other international operations of the DOMO Group are not directly affected by these filings.
