Trinseo Closes German Styrene and PC Production
Trinseo has finally decided to stop producing styrene at its Böhlen site in Germany, saying the plant – producing about 300,000 t/y – is too small to be competitive on the global market with current high gas prices and new styrene capacity additions sealing the unit’s fate.
The plant has been on borrowed time for a while – Trinseo first initiated a consultation process in March 2020, although it subsequently managed to secure a supply of raw materials that kept the Böhlen operation feasible.
Trinseo even put the styrenics business up for sale in the first quarter of this year, but then had to suspend its plans because of the macroeconomic and geopolitical environment.
A fine of €32.6 million by the European Commission for the company’s part in fixing the price of styrene on the merchant market may well have hastened the decision to exit production.
Trinseo is also closing one of two polycarbonate (PC) lines in Stade, Germany, here, too, citing its uncompetitive position in the global market. It will continue to produce PC from remaining assets for use in its downstream compounding business.
Another measure will see production of polymethyl methacrylate sheet (PMMA) in Matamoros, Mexico, consolidated into the continuous sheet manufacturing operations of subsidiary Aristech Surfaces in Florence, Kentucky, USA. Trinseo acquired Aristech Surfaces in September 2021.
In addition, Trinseo will cut capacity of SB latex at Hamina, Finland, from mid-2023 because of overcapacity in the European market.
The restructuring will enable the US specialty materials maker to cut operating costs by about $60 million. Trinseo expects to incur between $79 million and $89 million of pretax, non-recurring charges related to the restructuring. It did not say whether there would be any job losses as a result of the closures.
Author: Elaine Burridge, Freelance Journalist
