Leuna Polyamid enters insolvency proceedings and begins shutdown

The District Court of Halle has officially opened insolvency proceedings for Leuna Polyamid GmbH after a search for a new investor failed in early September. Lucas F. Flöther has been appointed as the insolvency administrator.

Following the decision, the chemical plant in the Saalekreis region is being systematically shut down. The final products are expected to leave the facility in early October, after which work will begin on securing, emptying, and cleaning the installations. Approximately 440 employees will receive termination notices in October, with most notices becoming effective at the end of January. During the shutdown phase, staff will be utilized for decommissioning tasks.

Due to insufficient funds within the insolvency estate to cover the full costs of decommissioning and site restoration, the administrator has released a large portion of the real estate and plants back to the debtor. However, the state of Sachsen-Anhalt will assume responsibility for safety and environmental obligations to prevent hazards. The state had previously financed emergency operations at a cost of nearly 80 million euros. Management cited high energy and raw material costs, alongside competition from China, as primary reasons for the lack of investor interest.