MOSCOW (MRC) -- Trinseo, a specialty material solutions provider, announced it has initiated an information and consultation process with the Works Council of Trinseo Deutschland GmbH regarding the potential closure of its styrene monomer production site in Boehlen, Germany, said the company.
The facility, which has a nameplate annual capacity of 300 kilotons, generated negative profitability of approximately USD30 million over the last four quarters ending Q2 2022.
Frank Bozich, President and Chief Executive Officer of Trinseo, commented, “Given the current economic outlook of higher inflation, lower customer demand and elevated energy costs, we are evaluating asset optimization across our portfolio."
Bozich continued, “The cost position of the Boehlen facility is challenged due to the current energy cost environment in Europe as well as the facility’s smaller scale, and it’s difficult to envision significant earnings improvement at the site in the near to medium term. Therefore, we have decided to evaluate the potential closure of this plant. In addition to improved profitability for Trinseo, we believe a closure will aid in achieving our 2030 sustainability goals, as Boehlen is one of our most carbon intensive plants."
We remind, Trinseo announced that it has appointed Han Hendriks to the newly created role of Chief Technology Officer (CTO), effective Oct. 1, 2022. As CTO, Hendriks will be a member of Trinseo’s executive leadership team and will be based in The Netherlands. In this role, he will drive the development of differentiated technology and innovation, allowing Trinseo to meet unfilled and unrecognized customer needs and develop sustainable solutions across Trinseo’s innovation pillars.
Trinseo a specialty material solutions provider, partners with companies to bring ideas to life in an imaginative, smart, and sustainability-focused manner by combining its premier expertise, forward-looking innovations and best-in-class materials to unlock value for companies and consumers. From design to manufacturing, Trinseo taps into decades of experience in diverse material solutions to address customers’ unique challenges in a wide range of industries, including consumer goods, mobility, building and construction, and medical. Trinseo’s approximately 3,400 employees bring endless creativity to reimagining the possibilities with clients all over the world from the company’s locations in North America, Europe, and Asia Pacific. Trinseo reported net sales of approximately USD4.8 bn in 2021.