Vynova Belgium files for bankruptcy, 600 jobs lost at Tessenderlo-Ham plant

What happened

Vynova Belgium, the chemical plant in Tessenderlo-Ham in Belgian Limburg, has filed for bankruptcy. The company informed unions and staff at an extraordinary works council meeting on Tuesday morning, 10 November, and said around 600 people will lose their jobs. Vynova operates several sites in Europe, but the Tessenderlo location is the one at the centre of this filing, and the plant is a continuation of Tessenderlo Chemie's chlorine chemistry operations. The company owes 275 million euros and had been under judicial reorganisation since December last year. After talks with the chemicals group Nobian on a takeover failed, management said it saw no other way out than filing for bankruptcy.

Why the talks failed

Management said Vynova Belgium held intensive discussions with several parties about a possible recapitalisation or takeover, but no agreement was reached. It blamed an extremely uncertain economic climate marked by high and volatile energy prices, persistently weak demand and rising imports from regions with lower production costs. Those conditions, it said, clearly affected the chances of a deal with a new investor. Management had been searching for a buyer for about a year, and staff had been told for a long time that a buyer would be found. Earlier, Vynova Group had tried to sell all its sites in one package to keep the Beek factory open, but the prospective buyer withdrew and no other solution emerged. In its statement, management wrote:

“We deeply regret that, despite the considerable efforts everyone in the company has made in recent months, we have reached this point.”

Effects in the Netherlands and France

LVM Netherlands BV, the company that took over the business units of Vynova Beek after that firm was declared bankrupt, is asking the court for a suspension of payments on Tuesday. Vynova Beek itself had requested a suspension in January, and production at Chemelot had already been halted in November last year. What the new developments mean for staff at Chemelot who had been working on a restart is still unclear. Two separate insolvency steps therefore run in parallel, one in Belgium and one in the Netherlands. In France, Vynova Mazingarbe SAS is examining the consequences and will take the necessary steps under French law, in close consultation with local social partners. That plant had been set to be sold together with the Tessenderlo-Ham and Beek sites.

Staff and open questions

Management said its first concern is its workforce and that it is fully aware of the far-reaching consequences for employees and their families. The statement added:

“Our attention goes first and foremost to our employees and their families.”

The company also thanked all colleagues for their commitment during what it called a particularly difficult period. The consequences for the French unit and for staff at Chemelot remain under review.