Chinese Buyer Acquires Perlon, German Fiber Leader, June 11

Wuxi Xingda Nylon Company, a Chinese chemical manufacturer based near Shanghai, has completed the purchase of Perlon Group, a German world market leader in synthetic fibers for paper machines, brushes, and medical devices. The sale closed after Perlon filed for insolvency in October 2025. Around 450 of 510 German jobs will be preserved across three sites. The deal reflects the pressure on German chemical makers from weak global demand, high energy costs, and Asian competition.

Why Perlon Fell Into Insolvency

Perlon Group, owned by Munich-based Serafin since 1938, filed for court-supervised restructuring in October 2025 after months of financial strain. The German chemical industry contracted 2.5% in 2025 due to weak global demand, high energy and raw material costs, and rising competition from Asia. Perlon suffered particularly from a sharp drop in orders for paper machine components in Europe and steep increases in labor and energy expenses.

The Chinese Takeover and Job Preservation

Wuxi Xingda Nylon won a competitive international bidding process to acquire Perlon’s seven operations across Germany, Poland, and China. The purchase price was not disclosed. The Ulm law firm SGP Schneider Geiwitz, which managed the restructuring, confirmed the sale is complete. Perlon operates facilities in Bobingen near Augsburg, Munderkingen in Baden-Württemberg, and Wald-Michelbach in Hesse. Around 450 of the 510 German workers will keep their jobs under the new Chinese owner.

Germany’s Chemical Sector Under Pressure

The German chemical industry faces its worst conditions in decades. Weak demand, high costs, and Asian competition have forced many producers to cut output and close plants. Perlon’s sale to a Chinese buyer underscores how global competition is reshaping German industrial ownership. The parent company of Wuxi Xingda is a major styrofoam producer based in the industrial region near Shanghai.

What This Means for Investors

The Perlon sale signals that German industrial assets are now attractive to foreign buyers at distressed valuations. Chinese firms are moving aggressively into European chemicals and specialty materials as European producers struggle with cost and demand headwinds. Investors in German chemical stocks should monitor whether this trend accelerates and what it means for future consolidation in the sector.

Final Thoughts

Wuxi Xingda’s acquisition of Perlon shows Chinese capital targeting distressed German industrial assets. While most German jobs are preserved, the deal reflects deeper structural weakness in German chemicals facing energy costs and Asian competition that will persist regardless of ownership.

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