- Closure expected to increase annual profitability by $15-20 million
- Board approval for closure anticipated in 2024
- Stade identified for potential PC dissolution facility
- Pilot polycarbonate-dissolution facility opened in Terneuzen, Netherlands
Potential Closure of Stade Facility
Trinseo has initiated a consultation process with the Works Council regarding the potential closure of its virgin polycarbonate production site in Stade, Germany. The company expects to seek board approval for the closure in 2024. If approved, Trinseo will cease producing virgin polycarbonate and will source it externally for its downstream businesses. This move is projected to increase annual profitability by $15 million to $20 million.
Market Conditions and Financial Viability
CEO Frank Bozich cited ongoing demand softening and price declines due to oversupply from offshore producers as key reasons for the potential closure. The significant fixed operating costs at the Stade facility further strain its financial viability.
Focus on Recycling Technologies
In its third-quarter 2023 earnings call, Trinseo identified Stade as a potential location for a polycarbonate dissolution facility. The company is committed to integrating modern recycling technologies, such as polycarbonate dissolution and depolymerization, to support the development of more sustainable products. Trinseo is exploring various options for viable locations to ensure that recycling plants are resilient and adaptive to customer needs.
Recent Developments
Trinseo recently opened a polycarbonate-dissolution pilot facility in Terneuzen, the Netherlands, highlighting its focus on developing commercial-scale recycling operations as a key pillar of its business strategy.
