Chemical company Vynova receives protection from creditors for Flemish factory
Chemical company Vynova has been granted protection from its creditors for its factory in Tessenderlo-Ham, Limburg province, which employs 600 people. The company has four months to reach an agreement on a recovery plan. The problems highlight the difficulties currently facing the European chemical sector.
Chemical company Vynova, owned by the German ICIG group, has been struggling for some time due to high energy prices, global overcapacity, fierce competition from cheaper regions and weak demand for PVC products.
As a result, the company closed a factory near Maastricht in the Netherlands earlier this summer and applied for a court settlement for its sites in Germany and the United Kingdom.
The same is now happening with the Vynova factory in Tessenderlo-Ham, which employs around 600 people. The commercial court in Hasselt has admitted Vynova Belgium to the judicial reorganisation procedure. The company receives four months of protection from its creditors. During this time, the management hopes to reach an agreement on a recovery plan.
Earlier this month, the factory was already shut down for a weekend. Thanks to the judicial agreement, nothing will change for the staff at the moment, declared Vynova's spokesperson to Het Belang van Limburg. Employment contracts and wage payments will continue as usual.
According to De Tijd, the problems at Vynova highlight the difficulties currently facing the chemical sector, in Belgium and in the rest of Europe. Earlier this week, it was announced that the Belgian chemical group Domo Chemicals had applied for judicial reorganisation for its activities in Germany.
#FlandersNewsService | Chemical company Vynova's factory in Tessenderlo-Ham © BELGA PHOTO CHRISTOPHE KETELS
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