Southern Germany-based sulphur consumer Kelheim Fibres will close its operations by 31 March.
The company had been under self-administration while seeking private investment to continue operating, but these efforts were unsuccessful, it said in a 26 January press release. A previous announcement in November signalled a planned closure, although a potential investor was subsequently interested in financing ongoing operations.
An orderly shutdown is now being initiated.
Kelheim Fibres is a small sulphur consumer, with around 15,000-20,000 t/yr demand, and also supplies some excess sulphuric acid to the local market. The firm's usual sulphur supplier is Bayernoil's Vohburg-Neustadt refinery, which has 97,000 t/yr of sulphur capacity.
Europe's chemical industry is facing high regional energy costs, elevated raw material prices, and competition from cheaper imports of many downstream products. This is increasing the risk of consolidation across the industry, as operating losses make production unviable for some facilities.
