Domo Chemicals’ German Units File for Insolvency, Operations Continue

Domo Chemicals, a Belgium-based producer of polymers and engineering plastics, said its German operating companies have entered insolvency proceedings as the company works to stabilize its European business.

The filings cover three German units: Domo Chemicals GmbH and Domo Caproleuna GmbH in Leuna and Domo Engineering Plastics GmbH in Premnitz. A German court has appointed an independent administrator to oversee the process and evaluate next steps, which may include bringing in an investor or renegotiating debt.

According to the administrator, all plants remain in operation, with production and customer shipments continuing as normal. The roughly 585 employees at the affected sites will continue to be paid for at least the next three months through Germany’s insolvency protection system.

Domo said the German businesses have been under pressure from weak demand in Europe, high energy costs and increased imports of polyamide resin from outside the European Union. The company said it began restructuring efforts in 2024, but the German entities filed for insolvency after talks to secure additional short-term financing fell through.