The US plastics manufacturer Trinseo is considering shutting down its polystyrene production at the Schkopau site. This is the company's response to the ongoing difficult situation in the European chemical industry. A final decision has yet to be made.
Trinseo PLC, a provider of speciality material solutions based in Wayne, Pennsylvania, has initiated an official information and consultation process with the works council of Trinseo Deutschland GmbH. The subject matter is the possible closure of polystyrene production at the Schkopau plant and a subsequent relocation of the remaining capacity to the Tessenderlo site in Belgium. According to the company, this step could lead to an annual improvement in earnings of around USD 10 million.
Background: difficult framework conditions for chemical production in Europe
Trinseo's reasoning is based on the tense situation in the European chemical industry, which has been strained for years. CEO Frank Bozich referred to weak end market demand, high energy prices and growing imports from Asia. These factors are putting increasing pressure on the competitiveness of European production sites.
„These decisions are never easy,“ said Bozich. „We realise that they affect the lives of our colleagues. Our focus is on a respectful and safe transition.“
Further measures in Europe
At the same time, Trinseo is closing its production of methyl methacrylate (MMA) and acetone cyanohydrin (ACH) in Italy. Both plants are to be shut down by the end of 2025. In future, the company intends to source MMA raw materials from third-party suppliers. Overall, Trinseo expects the European restructuring measures to improve earnings by around USD 30 million per year.
Source: Trinseo
