Trinseo Reviews PC Assets, Buys Dow’s Latex Plants
US plastics and rubber producer Trinseo is looking at strategic alternatives for its polycarbonate (PC) activities. President and CEO Frank Bozich said the review has been prompted by significantly declining margins resulting from low demand for the resin as well as new capacity in China.
The company operates a 145,000 t/y PC plant in Stade, Germany, and consumes about 40% of the output with the rest sold on the merchant market.
Trinseo has not set a timescale for the review but said that its Performance Plastics business unit remains “a focus area for growth.”
In January 2017, Trinseo, formerly known as Styron and once part of Dow Chemical, sold its 50% share in Japanese joint venture Sumika Styron Polycarbonate to partner Sumitomo Chemicals. The jv produced about 75,000 t/y of PC at a plant in Niihama City, Ehime, Japan.
In separate news, Trinseo has agreed to buy Dow’s latex production facilities and related infrastructure at Rheinmünster, Germany, for €40 million. The acquisition is expected to close in the second half of 2019, subject to regulatory approval and the usual closing conditions. About 114 Dow employees are to transfer to Trinseo.
“This acquisition is directly aligned with Trinseo’s strategy to grow its latex binders businesses, particularly in applications serving the adhesives and construction industry, as well as specialty paper,” said Bozich.
“Taking full control of these advantaged manufacturing assets will allow Trinseo to produce a wider variety of products, invest capital for technology upgrades and optimize operations for the mix of products and chemistries most needed by our customers,” he said.
Hayati Yarkadas, Trinseo’s senior vice president and business president, performance materials, added that the Rheinmünster site is well situated for future expansion as it already houses the company’s global latex binders R&D center.
As well as Rheinmünster, Trinseo also produces latex in Hamina, Finland, Norrkoping, Sweden, and Terneuzen, the Netherlands. The sites supply customers in Europe, the Middle East and northern Africa.
