Momentive to close German formaldehyde plant on lower European demand
Momentive Specialty Chemicals says it has commenced consultations with the German Works Council to cease production of formaldehyde and formaldehyde-based resins at its Leuna site.
This action will better align European market demand for forest products with Momentive’s existing assets, the company said.
Momentive intends to cease production at the Leuna plant by June 30, 2012, it said.
“We remain committed to serving the European forest products market from our other sites and are well positioned to do so with our existing Momentive assets,” said George Gallacher, vice president and managing director of Momentive’s European forest products business.
“The decision to close the Leuna plant is not easy for us, but is an unavoidable action that will allow us to maintain a competitive and profitable cost structure for our European Forest Products business in the future,” said Dale Plante, executive vice president and president of the forest products division.
Affected associates have been notified and Momentive will provide appropriate severance and other support, it said.
The site closure impacts 80 associates. Momentive did not disclose the site's capacity.
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