Trinseo Announces Closure of Virgin Polycarbonate Plant in Stade, Germany

Trinseo, a leading provider of specialty material solutions, has announced the commencement of an information and consultation process with the Works Council of Trinseo Deutschland Anlagengesellschaft mbH regarding the potential closure of its virgin polycarbonate ("PC") production facility located in Stade, Germany. The Company, listed on the New York Stock Exchange under the symbol TSE, anticipates seeking board approval for the closure in 2024 subsequent to the Works Council consultation process. Should an agreement be reached, Trinseo will cease the production of virgin PC at this site, opting instead to procure PC for its downstream operations exclusively through external suppliers. This strategic shift is projected to bolster annual profitability by an estimated $15 million to $20 million compared to the results of 2023.

Regrettably, Trinseo continues to witness a softening in demand and price declines attributed to an oversupply situation exacerbated by offshore producers flooding the EMEA (Europe, Middle East, and Africa) market with materials. The Company foresees these challenging market conditions persisting throughout 2024 and beyond. Furthermore, the fixed operating costs associated with the Stade facility pose an additional financial burden, further challenging its sustainability.

During the third-quarter 2023 earnings call, Trinseo highlighted Stade as a potential site for a PC dissolution facility. The Company is steadfast in its commitment to embracing and implementing modern recycling technologies, such as PC dissolution and depolymerization, to facilitate the development of more sustainable product offerings for its customers. Trinseo is actively exploring various options for suitable locations to establish recycling plants that are resilient and adaptable to evolving customer needs. The establishment of commercial-scale recycling operations remains a pivotal aspect of the company's strategic vision, exemplified by the recent inauguration of a polycarbonate-dissolution pilot facility in Terneuzen, the Netherlands.

Trinseo (NYSE: TSE), a renowned provider of specialty material solutions, collaborates with businesses to transform concepts into reality with creativity, intelligence, and a strong focus on sustainability. Leveraging its unparalleled expertise, innovative mindset, and top-tier materials, Trinseo delivers value to both companies and consumers alike. With a wealth of experience spanning numerous industries, including building and construction, consumer goods, medical, and mobility, Trinseo offers tailored solutions to address the unique challenges faced by its customers.

With a global workforce of around 3,100 employees, Trinseo fosters a culture of boundless creativity, continuously exploring new possibilities alongside clients worldwide. Operating from strategic locations across North America, Europe, and Asia Pacific, Trinseo remains committed to driving innovation and excellence. In 2023, the company reported net sales totaling approximately $3.7 billion, underscoring its position as a leading player in the industry.