Trinseo (“Trinseo” or “the Company”) (NYSE: TSE), a specialty material solutions provider, today announced it has initiated an information and consultation process with the Works Council of Trinseo Deutschland Anlagengesellschaft mbH regarding the potential closure of its virgin polycarbonate (“PC”) production site in Stade, Germany. The Company expects to seek board approval of the closure in 2024 following the Works Council consultation process. If an agreement is reached, Trinseo will no longer produce virgin PC and will obtain PC for its downstream businesses entirely via external purchases. In comparison to 2023 results, the action is expected to increase annual profitability by $15 million to $20 million.
“Unfortunately, we continue to see demand soften, and price declines due to the oversupply caused by offshore producers pushing material into the EMEA market. We anticipate these conditions to continue in 2024 and beyond. Additionally, our fixed operating costs at Stade are significant, placing a further strain on our financial viability at this location,” said CEO, Frank Bozich.
In the third quarter 2023 earnings call, the Company identified Stade as a potential location for a PC dissolution facility. The Company is committed to the integration and application of modern recycling technologies, such as PC dissolution and depolymerization, to help customers develop more sustainable product offerings. Trinseo is exploring numerous options for viable locations to ensure recycling plants are both resilient and adaptive to customer requirements. Developing commercial scale operations in recycling remains a key pillar of the business strategy moving forward as evidenced by the polycarbonate-dissolution pilot facility recently opened in Terneuzen, the Netherlands.
About Trinseo
Trinseo (NYSE: TSE), a specialty material solutions provider, partners with companies to bring ideas to life in an imaginative, smart, and sustainably focused manner by combining its premier expertise, forward-looking innovations, and best-in-class materials to unlock value for companies and consumers. From design to manufacturing, Trinseo taps into decades of experience in diverse material solutions to address customers’ unique challenges in a wide range of industries, including building and construction, consumer goods, medical and mobility.
Trinseo’s approximately 3,100 employees bring endless creativity to reimagining the possibilities with clients all over the world from the company’s locations in North America, Europe, and Asia Pacific. Trinseo reported net sales of approximately $3.7 billion in 2023. Discover more by visiting www.trinseo.com and connecting with Trinseo on LinkedIn, Twitter, Facebook, and WeChat.
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