German Chemical Industry Faces Triple Challenge: Insolvency, Stricter Safety Standards, and New Packaging Law
20.06.2026 - 08:46:07 | boerse-global.de
A mid-sized polymer producer in eastern Germany has become the latest casualty of surging raw material costs, highlighting the mounting pressures on the country’s chemical sector. Polyamid GmbH in Leuna filed for insolvency in mid-June 2026, citing price increases of 40 to 100 percent driven by geopolitical tensions. The company, which succeeded Domo Caproleuna, joins a growing list of firms struggling to pass on higher input prices in a competitive market.
At the same time, the industry is adapting to updated safety regulations for diisocyanates that took effect in June 2026. The revised guidelines prioritise technical safeguards such as closed systems and local exhaust ventilation. For personal protection, the rules now mandate nitrile or butyl gloves, respiratory protection and safety glasses. Storage requires cool, dry conditions in areas strictly separated from water or amines, and emergency plans must include immediately accessible eyewash stations.
Keeping up with hazardous substance regulations like the new diisocyanate rules demands meticulous risk assessments. The free COSHH Risk Assessment Toolkit provides 43 ready?to?use templates covering exposure controls, storage checklists, and emergency procedures — everything you need to stay compliant. Download the free COSHH Risk Assessment Toolkit
Beyond compliance, manufacturers are developing specialised isocyanate variants for high-performance applications. Cyclohex-1,4-ylenediisocyanate (CHDI), with a minimum purity of 97 percent, offers high hydrolysis resistance and UV stability for automotive assembly and exterior use, preventing yellowing. 1,5-Naphthalenediisocyanate (NDI) is used in polyurethane elastomers for demanding dynamic loads such as forklift wheels, conveyor belts and shock absorbers. Two other variants — 1,3-bis(isocyanatomethyl)cyclohexane and 1,3-bis(isocyanatomethyl)benzene (XDI) — are gaining ground in UV-resistant coatings, polymers and adhesives, with XDI increasingly produced via non-phosgene synthesis.
Parallel research is exploring bio-based alternatives. The BioRUHM project (2022–2025) developed isocyanate-free hotmelt adhesives from silane-modified polyesters, with a bio-content of 60 to 87 percent. Market readiness is expected in three to four years. A separate initiative, Bio4PurConti, is using €7 million in EU funding to create a continuous fermentation process for biobased aniline, the key precursor for methylenediphenyldiisocyanate (MDI). Pilot plants in Leverkusen and Ghent are testing how to shrink the CO? footprint of aniline production, which currently stands at roughly 20 million tonnes annually.
Regulatory pressure is also mounting on the packaging side. On 11 June 2026, the Bundestag passed the Verpackungsrecht-Durchführungsgesetz, implementing the EU’s Packaging and Packaging Waste Regulation (PPWR). Starting 12 August 2026, eco-modulation of licensing fees will create financial incentives for better recyclability. The European Commission, meanwhile, published a roadmap in early June to phase out animal testing in chemical safety assessments — a long-standing demand from animal welfare groups and some industry players. For chemical firms already grappling with cost inflation and insolvency risks, the new compliance burden adds another layer of uncertainty.
