Home Latest News & Insights TRINSEO CLOSES POLYCARBONATE LINE

TRINSEO CLOSES POLYCARBONATE LINE

January 3, 2023
chemical plant

Trinseo closes polycarbonate line in Stade, Germany, according to a recent company announcement.

The uncompetitive cost position of the plant seems to have prompted the closure of the production line.

Trinseo will continue to produce polycarbonate at the site. But it will be used for its compounding products.

“The line closure is expected to result in lower costs and significantly less exposure to the cyclical merchant polycarbonate market.” The company said.

The polycarbonate (PC) European market has suffered from the recent rise in energy costs.

Since the start of the war, most market participants have seen their margins fall. This has happened amid low demand and much competition from imports.

Another headwind for European producers concerns the current tremendous increase in PC capacity in China.

PC capacity in China has increased around 500,000 ktpa in 2022 and is expected to increase a further by 770,000 in 2023.

As this is taking place during a period of poor demand in the country, it has fuelled competitive imports from Asia.

Meanwhile, Europe seems to have so far avoided a potentially disastrous energy crisis, since gas dropped to €76.50/MWh.

But as the likelihood of a recession remains in place, there is a high probability of a yet another painful year ahead.