Leuna-Polyamid to Shut Down Plants After Investor Search Fails

Leuna-Polyamid GmbH is preparing to shut down its production facilities at the Leuna site after its search for an investor ended without a viable bid. According to the company, no binding offers were submitted by the end-August deadline, while the two remaining interested parties also withdrew.

Production scheduled for September is still expected to go ahead in order to fulfil existing customer orders. The controlled shutdown is due to begin in early October, when insolvency proceedings are expected to be formally opened.

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Leuna-Polyamid was established in spring 2026 after acquiring assets from insolvent Domo Caproleuna GmbH. Soon after operations began, sharp increases in raw material prices and supply shortages put pressure on liquidity. Additional financing needs arose as suppliers increasingly demanded advance payments. The company filed for insolvency under self-administration in June.

Deloitte was appointed to find a financially strong investor capable of securing raw material supplies, increasing plant utilisation and improving the site’s economic prospects. According to Leuna-Polyamid, however, the process ultimately failed because of continued uncertainty in both procurement and sales markets.

A major burden has been the rise in natural gas prices, which directly affects energy, hydrogen and ammonia costs. The company said relevant gas market prices have increased by a further roughly 80% since it filed for self-administration. On the demand side, weak market conditions and uncertainty surrounding rising imports from China have further clouded the outlook.

Efforts to improve the economic framework and make an investment possible for the remaining interested parties did not lead to a solution.

Once the insolvency proceedings are opened, the shutdown process is expected to take around 15 to 20 days. The plants will then be emptied and cleaned, with the subsequent steps depending largely on regulatory requirements.

Employees are initially expected to remain on site to support the shutdown and clean-up process. In parallel, the company plans to work with the employment agency and other companies at the Leuna chemical site to identify alternative employment opportunities.

The development is significant for Germany’s polyamide 6 value chain. The former Domo Caproleuna operation in Leuna comprised integrated production of chemical intermediates through to caprolactam. The planned shutdown therefore also raises questions about the future availability of key feedstocks for polyamide 6 production in Europe.

Leuna-Polyamid GmbH, Leuna/Halle (Saale), Germany

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