Speciality material solutions provider Trinseo has decided to shut down its ethylbenzene styrene monomer (EBSM) manufacturing facility in Terneuzen, the Netherlands.
All production activities and operations at this plant will officially be discontinued from 1 November.
Trinseo’s decision to cease operations at its Terneuzen site builds on the completion of joint negotiations with the Works Council of the city.
Following the permanent closure of this EBSM production site, Trinseo will purchase styrene from various third-party suppliers to fulfil the requirements of its downstream businesses.
Trinseo CEO Frank Bozich said: “Decisions like this that impact the livelihoods of our colleagues are never easy, and this decision in no way reflects on the capabilities of our dedicated teammates in Terneuzen, or at other operations that were part of this optimisation effort.
“Given reduced European demand and global styrene capacity additions, we believe that we will be able to support our downstream business effectively through market purchases with lower carbon, capital and energy intensity for the foreseeable future.”
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The move comes after the company announced its decision to shut down its acrylic (PMMA) sheet operations in Bronderslev, Denmark, Belen, New Mexico, and Rho, Italy.
Production at these closed facilities will now be compensated by PMMA sheets produced by other plants within the company’s global network, including at its Saint-Avold facility in France and Florence factory in Kentucky, US.
Trinseo has undertaken several other cost-saving measures and reductions. All of these initiatives together are set to help the company to save approximately $75m in aggregate, annually.
In addition, the business expects these actions to deliver future cash payments of approximately $50m, of which $35m will be incurred in 2024.
The restructuring actions, when combined with lower natural gas hedge losses, are projected to deliver a $100m sequential profitability improvement next year.