VENCOREX: Lyon insolvency court rules in favour of Wanhua

— By PIE staff — 

The future of insolvent isocyanate producer Vencorex (Saint-Priest, France; www.vencorex.com) has been decided. On 10 April, the commercial court in Lyon approved its acquisition by BorsodChem (Kazincbarcika, Hungary; www.borsodchem.com), a subsidiary of Chinese chemical group Wanhua. Their plans foresee the continued employment of only around 50 of the original 465 staff. Back in March, Vencorex had already laid off around a quarter of its workforce.

The regional government of the Auvergne-Rhône-Alpes province in France expressed regret over the decision, which means that a “jewel of the industry is falling into foreign hands”. Authorities had pinned their hopes on alternative solutions right up to the end – including support for a hastily formed private cooperative made up of employees and local businesses. However, the court deemed this proposal inadmissible due to lack of financing.

Related: BorsodChem has lifted the force majeure on MDI deliveries 

The parent company of Vencorex, PTT Global Chemical (PTT GC, Bangkok, Thailand; www.pttgcgroup.com), filed for insolvency for the French company on 10 September 2024. At that point, the firm had been operating in the red for years – due in part to low-cost competition from East Asia. Vencorex primarily produces TDI, HDI, and their derivatives, supplying major regional chemical companies such as Arkema, Air Liquide, Seqens (pharmaceuticals), and Solvay.