Trinseo announced that 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.
Recycling Operations Remains a Key Pillar of the Business Strategy
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 source all PC for its downstream businesses externally. Compared 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 integrating and applying advanced recycling technologies, such as PC dissolution and depolymerization, to help customers develop more sustainable product offerings. Trinseo is exploring numerous options for viable sites to ensure recycling plants are both resilient and adaptive to customer needs. The development of commercial scale recycling operations remains a key pillar of the business strategy going forward, as evidenced by the recently opened polycarbonate dissolution pilot plant in Terneuzen, the Netherlands.
Trinseo's Polycarbonate Range
Source: Trinseo