Home Latest News & Insights TRINSEO PLANS CLOSURE OF GERMAN PC PLANT

TRINSEO PLANS CLOSURE OF GERMAN PC PLANT

March 18, 2024
M&A

Trinseo plans closure of German polycarbonate (PC) plant. The company has announced plans to potentially shut down its virgin polycarbonate manufacturing facility in Stade, Germany by the end of 2024.

This decision is pending consultations with the local Works Council and compliance with German law.

The decision comes as part of the company’s strategy to navigate softening demand and price drops in the EMEA market, exacerbated by an oversupply from offshore producers.

CEO Frank Bozich cited significant fixed operating costs and challenging market conditions as key factors influencing the potential closure.

Trinseo aims to enhance its annual profitability by $15 to $20 million through this move, transitioning to sourcing polycarbonate externally for its downstream businesses.

This announcement follows the company’s commitment to sustainable solutions, including the integration of modern recycling technologies.

Trinseo continues to explore locations for recycling plants to support the development of sustainable products, maintaining a focus on commercial-scale recycling operations as a core element of its business strategy.