October 1, 2024 16:39

The U.S.-based Trinseo confirmed the closure of its polycarbonate production plant in Stade, Germany, following negotiations with unions. The facilities will be permanently shut down by January 2025. Afterward, the company will meet its internal demand for the polymer through external suppliers, resulting in estimated savings of $15 million to $20 million annually.

Additionally, effective Oct. 1, 2024, the company is combining the management of its Engineered Materials, Plastics Solutions, and Polystyrene businesses, resulting in a workforce reduction due to the consolidation of management roles and support functions. These actions began in the third quarter of 2024 and are expected to be substantially complete by the end of 2025. The expected annualized run rate cost savings is $30 million, with approximately $25 million realized in 2025 and the full run rate achieved by the end of 2026.

Upon completion of the reorganization, the newly combined Engineered Materials, Plastics Solutions, and Polystyrene businesses will be led by Francesca Reverberi, senior vice president of Engineered Materials.
Bregje “Bee” Van Kessel, who currently leads the Plastics Solutions and Polystyrene businesses, will assume the role of senior vice president of Corporate Finance and Investor Relations, reporting to David Stasse, executive vice president and chief financial officer. Han Hendriks, who leads technology and innovation, will add oversight responsibilities for the company’s sustainability activities as chief technology and sustainability officer.

Trinseo expects to record total pre-tax restructuring charges of $23 million to $28 million, mainly consisting of $22 million to $26 million in severance and related benefit costs, and $1 million to $2 million in asset-related and contract termination charges, primarily related to the virgin polycarbonate manufacturing site in Stade, Germany.

“These measures are the result of a thoughtful analysis of our portfolio and industry trends, combined with an understanding of the global competitive environment. We believe they will result in a more streamlined organizational structure that will fuel our ability to continue to grow strategically, while improving service to our customers and reducing costs,” said Trinseo President and CEO Frank Bozich.
“None of these actions are taken lightly, especially those directly impacting our colleagues. These are extremely difficult decisions that are in many ways driven by macroeconomic factors that are simply beyond our control,” Bozich added.

© Polimerica -  Reproduction prohibited, all rights reserved