Momentive Specialty to halt formaldehyde production in Leuna, Germany
Momentive Specialty Chemicals has started consultations with an European local firm, Works Council, to halt production of formaldehyde and formaldehyde-based resins at its site in Leuna, Germany, by 30 June 2012.
The Leuna site is operated by Momentive Specialty Chemicals' subsidiary, Momentive Specialty Chemicals Forest Products.
Momentive Specialty Chemicals forest products division executive vice president and president Dale Plante said, "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."
Momentive European forest products business vice president and managing director George Gallacher 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."
Momentive said it has notified the 80 impacted associates, and will provide appropriate severance and other support to them.
Momentive Specialty Chemicals, an indirect subsidiary of Momentive Performance Materials Holdings, makes thermoset resins such as acrylic monomers, amino resins, epoxy resins, phenolic resins, polyester resins, versatic acid and derviatives used by various industries including automotive, construction, transportation, electronics, and others.