Momentive Specialty Chemicals Inc. has announced that it has commenced consultations with the Works Council to cease production of formaldehyde and formaldehyde-based resins at its Leuna site operated by Momentive Specialty Chemicals Forest Products GmbH (the "Company").
This action will better align European market demand for forest products with Momentive's existing assets. The Company intends to cease production at the Leuna plant by June 30, 2012.
"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 - Forest Products Division.
Affected associates have been notified and the Company will provide appropriate severance and other support. The site closure impacts 80 associates.