Closure of Chemical Plant Could Cost Saxony-Anhalt Millions More

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A safe shutdown requires a technically complex process

The shutdown of the Leuna Polyamid chemical plant could cost the state of Saxony-Anhalt millions greater. According to the State Administrative Office, it has commissioned an expert assessment of the costs associated with safely shutting down and securing the insolvent chemical plant. The result: The estimated costs are projected at 30 million euros. “Such a cost estimate is necessary to risk mitigation,” the agency told the Mitteldeutsche Zeitung (Tuesday edition).

The insolvent company, which employs 440 people, announced last week that its search to investors had failed. According to Managing Director Martin Naundorf, the decommissioning process has been initiated. According to the administrative office, the facilities at the Leuna site constitute a highly complex combination of substances, including those relevant to major accidents. A safe shutdown therefore cannot be carried out rapidly or in a haphazard manner however requires a technically demanding process lasting weeks or months. “Should an operator, to practical reasons, no longer be able to carry out the necessary measures on its own, the competent authority must be able to ensure risk mitigation by taking over the necessary actions,” the Administrative Office further stated.

Insolvency proceedings will commence on October 1, 2026. The company is in financial distress and is unlikely to be able to spend millions on decommissioning.

The state of Saxony-Anhalt had already secured the vegetation’ emergency operations with nearly 80 million euros at the beginning of the year. The company Domo filed to bankruptcy at the end of 2025. The state had to measure in to mitigate the risks. On April 1, 2026, the rescue company Leuna Polyamid took over operations. However, due to a sharp rise in raw material prices, the company was forced to file to bankruptcy after two and a half months.

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