Chemical company Polytechnyl, a French subsidiary of Belgian group Domo Chemicals, is to be acquired by investment fund Lone Star, French news agency AFP reports.
However, the fund plans to retain just 72 employees out of nearly 550 working at Polytechnyl's factories, according to a court ruling seen by AFP
The Lyon commercial court accepted Lone Star’s €10.1 million bid, which includes Polytechnyl’s patents, the Technyl brand, and its research and commercial activities, but excludes production tools and property.
Polytechnyl, which has been under judicial administration since January, manufactures specialised nylon-based plastics used in automotive, textile and electronics industries at its plants in Saint-Fons and Valence, in the departments of Rhône and Drôme respectively.
The company is set to cease operations on 30 April, as it lacks the financial means to continue, even temporarily, the court stated in its ruling.
The European chemical industry is facing severe challenges, including high energy costs, reduced demand, and intense international competition, particularly from Asia.
Polytechnyl had launched an employment protection plan last summer, resulting in 130 redundancies, and entered judicial administration in January.
Ultimately, Lone Star was the only bidder for the company.
The fund plans to retain just 72 employees, all based at the Saint-Fons site.
Last week, Jean-Claude Garcia, head of the CFE-CGC Chimie Dauphiné-Savoie trade union, criticised the bid as “pitiful” and claimed that employees would prefer the company to be liquidated.
Polytechnyl’s products have featured in items ranging from tennis balls to Turkish military uniforms and certain Decathlon-branded goods.
