The facility, in the northern city Ravenna, produces catechol and hydroquinone for the pharmaceutical, agrochemical, flavour and fragrance industries and employs a staff of 40 people.
The firm explained that there is “overcapacity in the market for catechol” and added that it “does not foresee this situation to change in the near future and the outlook for Borregaard Italia indicates continued losses.”
“We have pursued a number of alternatives for improving the competitiveness of the company, without reaching a sufficient solution. We deeply regret having to make this decision after such strong efforts.”