Trinseo to Exit Virgin Polycarbonate Production in Stade, Germany by January 2025

Trinseo, a leading specialty materials solutions provider, has announced a series of restructuring initiatives aimed at positioning the company for sustainable growth, enhanced profitability, and increased cash generation. Begining October 1, 2024, Trinseo will combine the management of its Engineered Materials, Plastics Solutions, and Polystyrene divisions. This consolidation is expected to reduce the workforce by streamlining business management roles and support functions. These changes began in Q3 2024 and are projected to be largely completed by the end of 2025. Trinseo anticipates annual cost savings of $30 million, with $25 million realized by 2025 and full savings by the end of 2026.

The newly combined business unit will be led by Francesca Reverberi, Senior Vice President of Engineered Materials. Bregje "Bee" Van Kessel, currently heading Plastics Solutions and Polystyrene, will take on the role of Senior Vice President of Corporate Finance and Investor Relations, reporting to David Stasse, Executive Vice President and Chief Financial Officer. Additionally, Han Hendriks, who leads technology and innovation, will assume responsibilities for sustainability as Chief Technology and Sustainability Officer.

In a significant operational change, Trinseo will exit virgin polycarbonate production at its Stade, Germany facility. This decision was made after discussions with the relevant works councils, and production is set to end by January 2025. Severance and associated benefit payments will be completed by the end of 2026. Following this exit, Trinseo will source polycarbonate for its downstream compounded products from external suppliers, except for its dissolution-based polycarbonate production. This shift is expected to improve annual profitability by $15 million to $20 million compared to continuing production at Stade.

Trinseo’s President and CEO, Frank Bozich, emphasized that these decisions result from careful analysis of market trends and competitive pressures, with the goal of creating a more efficient organization that supports strategic growth, customer service, and cost reduction. The company expects to incur total pre-tax restructuring charges of $23 million to $28 million, primarily for severance and related costs, as well as asset and contract termination charges tied to the Stade facility.

Bozich acknowledged the difficulty of these decisions, particularly their impact on employees, and expressed the company’s commitment to supporting affected workers through the transition. He also commended Trinseo’s global workforce for their continued dedication during this period of change.

Trinseo, a leading specialty materials solutions provider, collaborates with companies to bring innovative ideas to life by leveraging its expertise, cutting-edge innovations, and high-quality materials with a focus on sustainability. By offering smart, imaginative solutions, Trinseo helps unlock value for both businesses and consumers.

With decades of expertise in a wide range of material solutions, Trinseo serves customers in industries such as building and construction, consumer goods, medical, and mobility. From design through manufacturing, the company addresses unique challenges with tailored approaches.