DOMO Chemicals announces plan to stop and close its third line of Biaxally Oriented PA films (BOPA) from DOMO in Leuna (Germany), effective from August 2020. DOMO has informed the affected employees and states that other operations at the Leuna plant will not be impacted. The difficult decision was reached as a result of permanent global overcapacity for nylon films.
“In these extraordinary circumstances of high business volatility, we have opted to continue to focus on quality and flexibility through cautious and smart asset management, rather than reacting with short-term volume strategies” Attilio Annoni, managing director at DFS said.
DOMO to Focus on Global Growth Objectives
Despite the current market slowdown, which is affecting the automotive and other industrial segments served by DOMO’s “Polymers & Intermediates” and “Engineering Materials” units, the company remains on course to achieve its global growth objectives.
The objectives include, among others, the continued development of sustainable solutions for customers, in accordance with the highest corporate, social and environmental responsibility standards.
DOMO’s Nylon Film business remains a key asset. It forms an integral part of the supply chains related to segments, such as pharmaceuticals, medical, and food packaging, which have all proven to be so essential during the COVID-19 period.
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We continue to focus on flexibility and competitiveness, and on supporting our customers in successfully meeting current and future market challenges with specialized and sustainable solutions. As ever we will continue to partner with our customers in developing and supplying nylon films for high performing and sustainable flexible packaging structures,” Annoni concludes.
Source: DOMO Chemicals