Sources Reveal: After Domo Chemicals' Three German Subsidiaries Filed for Bankruptcy, Shipments from German Production Sites Have Been Suspended

January 6, 2026 — According to sources familiar with the matter, Domo Chemicals has suspended spot deliveries from its production sites in Germany.

Previously, on December 29, 2025, Domo Chemicals announced that its three German subsidiaries — Domo Chemicals GmbH, Domo Caproleuna GmbH, and Domo Engineering Plastics GmbH — had officially filed for bankruptcy.

This bankruptcy event will affect approximately 585 employees: Domo Chemicals GmbH (about 35 employees), Domo Caproleuna GmbH (about 480 employees), and Domo Engineering Plastics GmbH (about 70 employees).

Headquartered in Belgium, Domo Chemicals produces and sells polymers, engineering plastics, and high-performance fibers for customers in the global automotive, consumer goods, industrial, and electrical and electronics industries. According to the company, its business has been impacted by persistently weak demand in the European chemical industry. High energy costs and a significant increase in imports of polyamide resins from non-EU countries, especially China, have further exacerbated the situation. In response, the management team initiated a restructuring process in 2024. However, due to the recent breakdown of negotiations over additional short-term financing, the three German entities were forced to file for bankruptcy.

It is understood that these three German companies of Domo Chemicals mainly produce intermediates such as cumene, phenol, acetone, cyclohexanone, caprolactam, and ammonium sulfate, as well as polyamide 6 resins and engineering plastics.

According to informed sources, the company's current capacity utilization at its German production sites is below 60%. Meanwhile, to reduce unnecessary transportation costs, the company has requested customers to arrange their own pickups, and "a large number" of orders have been suspended.

Under German law, employees are protected by statutory insolvency benefits provided by the German Federal Employment Agency. This fund covers unpaid net wages for up to three months before and after the start of insolvency proceedings. In preliminary proceedings, funds are typically advanced to ensure continued wage payments. However, after this period, the government no longer provides wage support, meaning the company must secure its own funds to maintain operations. It is reported that the preliminary insolvency proceedings will last until April 1.