Trinseo, a speciality material solutions provider, has announced the potential closure of its virgin polycarbonate (PC) manufacturing facility in Stade, Germany.
The company said that it has started an information and consultation process with the works council of Trinseo Deutschland.
Following the consultation process with the works council, Trinseo expects to seek its board’s approval for closure of the plant this year.
If the closure proceeds, Trinseo will cease production of virgin PC at the site and source it externally for its downstream businesses.
The company anticipates annual profitability to improve by $15m to $20m compared to 2023's results through this action.
Trinseo CEO Frank Bozich said: "Unfortunately, we continue to see demand soften, and price declines due to the oversupply caused by offshore producers pushing material into the EMEA [Europe, the Middle East, and Africa] market.
“We anticipate these conditions to continue in 2024 and beyond. Additionally, our fixed operating costs at Stade are significant, placing a further strain on our financial viability at this location."
The announcement comes after Trinseo identified the Stade site as a potential location for a polycarbonate dissolution facility in the third quarter of 2023.
The company emphasises its commitment to integrating modern recycling technologies such as polycarbonate dissolution and depolymerisation to support its customers in developing sustainable products.
Trinseo is actively exploring various options for a viable location to ensure that its future recycling plant locations are resilient and adaptive to customers' requirements.
Recently, the company inaugurated a PC-dissolution pilot facility in Terneuzen, the Netherlands, underscoring its dedication to sustainability within the industry.
Trinseo supplies speciality material solutions for various industries, including consumer goods, medical, and building segments, among others.
The company operates locations in North America, Europe, and Asia Pacific.
In December last year, Trinseo decided to shut down its ethylbenzene styrene monomer manufacturing facility in Terneuzen.
