Trinseo restructures in Italy and Germany

The specialty material solutions provider Trinseo announced a series of strategic plans aimed at further optimizing its operations, enhancing cash flow generation and strengthening long-term profitability.

Such measures also involve Italy, where the company will permanently close its methyl methacrylate (MMA) production operations at its Rho (Milan) facility and its acetone cyanohydrin (ACH, a precursor to MMA) production operations in Porto Marghera (Venice). Moving forward, the company will source MMA feedstock from third-party producers, ensuring continuity of supply while improving overall cost to produce downstream products. Trinseo will continue its polymethyl methacrylate (PMMA) operations along with its recently opened depolymerization pilot facility in Rho.

The company will work closely with the works council, unions, and government officials to ensure alignment with respect to all legal requirements associated with this process. The closures are anticipated to be completed by the end of the year and expected to result in annualized profitability improvement of approximately 20 million dollars and an annual reduction in capital expenditures of approximately 10 million dollars.

In addition, the company announced it has initiated an information and consultation process with the works council of Trinseo Deutschland regarding the potential closure of its polystyrene (PS) production at its Schkopau production site and the intention to consolidate remaining PS production into its Tessenderlo (Belgium). If an agreement will be reached, the action is expected to result in annualized profitability improvement of 10 million dollars.

“These plans are a by-product of the continuing challenges we and our peers in the European chemical industry have been facing for the past several years, including weak end market demand, high energy prices, and increased imports from Asia. These decisions are never easy. With each one we know the livelihoods of colleagues and their families are being impacted. As we have done in each restructuring during this unprecedented trough, our primary focus has been on the safety of our colleagues, along with a respectful transition that aligns with our philosophy of simply doing the right thing”, Trinseo President and CEO Frank Bozich stated.