Switzerland-based specialty chemicals company Clariant said on Wednesday that it has decided to shut down its sunliquid bioethanol production plant in Podari, Romania, and to downsize related activities of the business line Biofuels & Derivatives in Germany (Straubing, Planegg and Munich).

The decision came after a strategic evaluation of the plant's operations that was not meeting Clariant's targeted operational parameters. 

Clariant concluded that continued losses and the need for significant additional capital expenditure made it economically unviable to continue ramping up the plant.

“After a careful review of all the strategic options, we have decided to close the Podari operation. We will work closely with employee representatives in Romania and Germany and are committed to finding solutions that are most socially responsible. For a company that focuses as much on innovation as we do, it is imperative to take firm decisions when a project does not fulfill expectations and to execute even more rigorously on our sustainable growth strategy,” said Conrad Keijzer, Chief Executive Officer of Clariant.

The closure will result in restructuring costs and provisions of approximately CHF 60 – 90 million, impacting EBITDA, in December 2023. In addition, further impacts of approximately CHF 110 million will be incurred at the EBIT level, including a non-cash impairment to the current asset value of the Podari plant and other remaining assets.