Speciality chemical company Clariant has announced it will be closing down its sunliquid bioethanol plant in Podari, Romania.

In addition, the company said it would be downsizing related activities in Germany.

In July 2023, Clariant started a strategic evaluation of the options for the Podari plant, which started producing bioethanol in the second quarter of 2022, after it became clear that the plant was not achieving operational targets.

Due to continued losses at the plant, Clariant management concluded that significant additional capital expenditure could not be justified, the company said on 6 December.

“After a careful review of all the strategic options, we have decided to close the Podari operation,” Clariant CEO Conrad Keijzer said.

After completing a preliminary financial assessment of the impact of the closure and restructuring costs, Clariant estimated the costs would be approximately CHF60M-90M (US$70.3M-US$105.4M).

In addition, further costs of CHF110M (US$129M) would be incurred at the EBIT level.

The costs – mainly booked in December 2023 – would be reflected in the full year 2023 results, due to be announced on 29 February 2024.