Singapore-based specialty chemicals company DyStar has announced plans to “restructure” its plant in Ludwigshafen, Germany, in response to changing business conditions and market changes. The plant, inherited from the company’s founders, who started indigo research and production more than 125 years ago, has been an integral part of DyStar’s global network. The corresponding press release sent out earlier this week indicates that the plant will actually be shut down and the staff laid off. This assumption is supported by the local newspaper Weinheimer Nachrichten, which wrote on April 25 that the Indigo factory will close by the end of 2024, affecting about 80 employees.
Xu Yalin, managing director and president of the DyStar Group, explained: “This is an important strategic move for DyStar. We will focus on developing key emerging markets, which have been shifting over a decade. In the wake of higher energy costs and inflation, DyStar is determined to further improve cost efficiency and drive sustainable productivity as we continue to deliver the highest quality of innovative products that support the global supply chain.” DyStar plans to implement the plant’s restructuring in phases, said Eric Hopmann, chief commercial officer. “DyStar’s customers can be further assured of undisrupted supply, hence their production should not be affected as we will work closely to meet their specific requirements.” The company asserted that it will treat all affected parties “with due respect and dignity throughout the restructuring process.” It will contact all customers and suppliers shortly. “It is also our priority to meet all outstanding obligations and discuss all issues related to the restructuring agenda, as well as opportunities to move forward with future plans,” Hopmann added. “DyStar Group […] will continue to serve them through our other facilities in our global network. We value the trust and support of our customers, suppliers, and the local community, and we are committed to maintaining these relationships.”
