Following a strategic review of its polycarbonate (PC) activities announced in May this year, US plastics and rubber producer Trinseo has decided to keep its PC manufacturing plant in Stade, Germany.

At the time, president and CEO Frank Bozich said the review had been spurred by significantly declining margins resulting from low demand as well as new capacity in China. Trinseo consumes about 40% of the Stade plant’s 145,000 t/y output and sells the rest on the merchant market.

Speaking to analysts during the company’s Q3 earnings call, Bozich said the decision to keep the plant was driven by the economics of supplying PC to its higher-margin downstream compounding business.

At the same time, Trinseo has identified structural and raw material cost savings that should provide a more sustainable outlook, and now intends to operate the site for the “foreseeable future,” Bozich added that the company will continue looking at its assets with a view to optimising its portfolio.

Separately, Trinseo plans to build a pilot facility for thermoplastic elastomers (TPEs) in Hsinchu, Taiwan, supplying customers in the automotive, consumer electronics, footwear and medical markets. Start-up is anticipated in 2020.  The investment is the next step in the company’s TPE growth roadmap following the acquisition of Italy’s API in July 2017.