January, 15, 2026 - The German sites of DOMO Chemicals will be allowed to continue operating at a minimal level for the time being. The state of Saxony-Anhalt has ordered the continued operation of the production facilities in Leuna on public safety grounds. This means that an immediate shutdown of operations is off the table for now.
The background to the decision is that a safe shutdown of the Leuna production facilities cannot be implemented under the current weather conditions. To prevent risks to human health and the environment, the facilities must continue running. At present, only the current operators are in a position to prevent such hazards. As a result, the state has ordered a so-called "substitute performance" (Ersatzvornahme) to avert the risks associated with an uncontrolled shutdown. This measure does not affect the existing obligations of DOMO Caproleuna GmbH, the entity operating the Leuna facilities.
“It is very good news that the state has enabled continued production – albeit at reduced capacity – for the time being,” said Prof. Dr Lucas F. Flöther, court-appointed preliminary insolvency administrator from the law firm Flöther & Wissing. “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.” One possible outcome could be the takeover of the company by a third party. In such a scenario, the state could withdraw from the substitute performance, and the company might again have a long-term outlook.
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. As the companies currently lack the funds to pay suppliers, there was a risk of deliveries being halted.
After negotiations last Thursday between creditors and the shareholder regarding urgently needed bridge financing failed, Saxony-Anhalt’s Minister of Economic Affairs, Sven Schulze, brought all key stakeholders together in Leuna on Monday in a last effort to find a solution. Participants included the management board, the works council, representatives from trade union IGBCE, and Infraleuna. As the creditors could not be persuaded to compromise in time, the state initiated the substitute performance.
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. These payments are secured for the duration of the preliminary insolvency proceedings, expected to run until the end of March. This applies to all three insolvent DOMO entities. Production at the Premnitz site will also continue.
The insolvency proceedings affect DOMO Chemicals GmbH (Leuna, approx. 35 employees), DOMO Caproleuna GmbH (Leuna, approx. 480 employees), and DOMO Engineering Plastics GmbH (Premnitz, approx. 70 employees).
