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Saxony-Anhalt Orders Domo’s Leuna Plant to Run in Safety Mode After Insolvency

A safety-only state order averts winter shutdown hazards to buy time for an investor search.

Overview

  • Officials said a controlled shutdown is unsafe in current winter conditions, so production continues in a reduced, hazard-preventing mode under a legal Ersatzvornahme.
  • The Landesverwaltungsamt estimates public costs in the higher single-digit to low double-digit millions of euros, with the intent to recover expenses from the responsible party in the proceedings.
  • The insolvency administrator secured pre-financing of insolvency pay, with wages currently covered until about the end of March for all three German Domo entities.
  • Operations at Premnitz in Brandenburg can also continue because it receives material from Leuna, while InfraLeuna and major suppliers back the effort to stabilize the sites.
  • Economics Minister Sven Schulze convened creditors and reports interest from potential investors, saying the extended operation creates a window to seek a buyer or new operator for the assets.