INEOS Styrolution to close Channahon, Illinois polystyrene plant
- Permanent closure of the Channahon, Illinois polystyrene site with decommissioning expected completed by Q4 2026.
- The Channahon site currently employs approximately 100 people and the company will support affected employees during the transition.
- The site has operated since 1960 and has a production capacity of approximately 400,000 metric tons.
- North American polystyrene production will be consolidated from three sites to two, continuing at Decatur, Alabama and Altamira, Mexico.
Closure decision and timeline
INEOS Styrolution announced the permanent closure of its polystyrene production site in Channahon, Illinois, with decommissioning and an orderly closure process expected to be completed in the fourth quarter of 2026.
Reasons and business impact
The company cited market conditions, persistent margin pressures, ongoing industry oversupply, the site’s cost structure and underutilization as the drivers behind the decision. Leadership said the move reflects broader market dynamics rather than site performance and reaffirmed confidence in polystyrene’s long-term value.
Operational changes and customer supply
As part of an asset-footprint optimisation, INEOS Styrolution will transition North American polystyrene production from three sites to two, maintaining production at Decatur, Alabama and Altamira, Mexico to create a more efficient and reliable network while continuing to serve customers across healthcare, packaging, appliances and construction.
Site details, workforce and safety
The Channahon site — in operation since 1960 — has approximately 400,000 metric tons of capacity and currently employs about 100 people. The company said it will support affected employees through the transition, keep the Americas Regional Development Center at the site, and prioritise safety for employees, contractors and the local community throughout the closure.
Source: INEOS
