Specialty material solutions provider Trinseo recently announced that the company will permanently close its methyl methacrylate (MMA) production operations at its Rho, Italy, facility and its acetone cyanohydrin (ACH) production operations in Porto Marghera, Italy. ACH is a precursor to MMA. Moving forward, the company will source MMA feedstock from third-party producers, ensuring continuity of supply while improving overall cost to produce downstream products. The move is part of a series of strategic plans aimed at further optimizing Trinseo’s operations and strengthening the company’s long-term profitability. 

Trinseo will continue its polymethyl methacrylate (PMMA) operations along with its recently opened depolymerization pilot facility in Rho. The company announced that it will work closely with the Works Council, unions, and government officials to ensure alignment with respect to all legal requirements associated with this process. The closures are anticipated to be completed by the end of the year and expected to result in annualized profitability improvement of approximately $20 million and an annual reduction in capital expenditures of approximately $10 million.

In addition, the company announced it has initiated an information and consultation process with the Works Council of Trinseo Deutschland GmbH regarding the potential closure of its polystyrene (PS) production at its Schkopau, Germany, production site and the intention to consolidate remaining PS production into its Tessenderlo, Belgium, location. If an agreement is reached, this action is expected to result in annualized profitability improvement of $10 million.

Trinseo President and CEO Frank Bozich explained, “These plans are a by-product of the continuing challenges we and our peers in the European chemical industry have been facing for the past several years, including weak end market demand, high energy prices, and increased imports from Asia.

“These decisions are never easy. With each one we know the livelihoods of colleagues and their families are being impacted. As we have done in each restructuring during this unprecedented trough, our primary focus has been on the safety of our colleagues, along with a respectful transition that aligns with our philosophy of simply doing the right thing.”

In addition, the company’s board of directors voted to indefinitely suspend its quarterly dividend of $0.01 per share, effective immediately, which action is expected to save approximately $1.5 million annually.

Despite these changes, Trinseo stated that it remains firmly committed to its customers, partners, and employees across Europe and around the world. The company will continue to invest in key markets and explore new opportunities to deliver value and impact.

Discover more about Trinseo by visiting www.trinseo.com. Read more about the latest moves in the chemical industry at ASI's raw materials and chemicals topics page.