Ineos Styrolution will permanently close its polystyrene plant in the US state of Illinois. The company cites ongoing margin pressure, overcapacity in the market, and the site's cost structure as reasons. Production will be concentrated at two plants in North America in the future.
The Channahon plant is scheduled to be phased out by the fourth quarter of 2026. Around 100 employees are affected by the decision. However, the company states that Ineos Styrolution remains committed to the North American polystyrene market and will continue to supply customers from its sites in Decatur, Alabama, and Altamira, Mexico.
Market conditions put polystyrene under pressure
„Persistent margin pressure continues to threaten the profitability of our North America business, as we continue to suffer from the effects of industry overcapacity,“ says Steve Harrington, CEO of Ineos Styrolution.
He further explained: „Following a comprehensive assessment of market conditions, industry capacity utilisation, the site's cost structure, and long-term prospects, we have concluded that continuing to operate the Channahon plant is no longer economically viable. At the same time, we remain convinced of the long-term value of polystyrene.“
According to the company, the closure is part of a strategy to optimise its production network. In future, polystyrene production in North America will take place at two sites instead of the current three.
The packaging market remains an important sales area
Ineos Styrolution plans to continue supplying customers in the healthcare, packaging, household appliances, and construction sectors with polystyrene, according to the company. At the same time, the company announces it will continue developing circular solutions for the material.
„We remain firmly convinced of the benefits that polystyrene offers our customers,“ says Greg Fordyce, President of Ineos Styrolution Americas. „Its versatility, performance, efficiency, and potential for circular solutions make the material indispensable for numerous applications. By concentrating production at fewer, more efficient sites, we are strengthening our ability to reliably supply customers and secure our long-term competitiveness in a challenging market environment.“
The Channahon plant has been in operation since 1960 and has a production capacity of around 400,000 tonnes of polystyrene per year. The regional development centre for North and South America, located at the site, is to be retained and will continue to support the development of new applications for styrene-based plastics.
Source: Ineos Styrolution
