Trinseo Announces Agreement to Sell Polycarbonate Technology License and Stade, Germany Polycarbonate Assets to Deepak Chem Tech Limited
Trinseo (NYSE: TSE) has announced agreements to provide a polycarbonate technology license and polycarbonate production equipment from its Stade, Germany facility to Deepak Chem Tech , a subsidiary of Deepak Nitrite , for use in India. The total value of the agreements is $52.5 million, with expected payments of approximately $9 million by end of 2024 and $21 million in first half of 2025, subject to milestones. Following this asset disposition, Trinseo will exit the Stade site. This move aligns with Trinseo's recent decision to exit virgin polycarbonate production while exploring strategic partnerships in high-growth markets.
Trinseo (NYSE: TSE) ha annunciato accordi per fornire una licenza tecnologica per il policarbonato e attrezzature per la produzione di policarbonato dalla sua struttura di Stade, in Germania, a Deepak Chem Tech, una filiale di Deepak Nitrite, per utilizzare in India. Il valore totale degli accordi è di 52,5 milioni di dollari, con pagamenti previsti di circa 9 milioni di dollari entro la fine del 2024 e 21 milioni di dollari nella prima metà del 2025, soggetti a determinate condizioni. A seguito di questa cessione di asset, Trinseo abbandonerà il sito di Stade. Questa mossa è in linea con la recente decisione di Trinseo di uscire dalla produzione di policarbonato vergine, mentre esplora partnership strategiche in mercati ad alta crescita.
Trinseo (NYSE: TSE) ha anunciado acuerdos para proporcionar una licencia de tecnología de policarbonato y equipos de producción de policarbonato desde su instalación en Stade, Alemania, a Deepak Chem Tech, una subsidiaria de Deepak Nitrite, para su uso en India. El valor total de los acuerdos es de 52,5 millones de dólares, con pagos esperados de aproximadamente 9 millones de dólares para finales de 2024 y 21 millones de dólares en la primera mitad de 2025, sujetos a hitos. Tras esta disposición de activos, Trinseo saldrá del sitio de Stade. Este movimiento se alinea con la reciente decisión de Trinseo de abandonar la producción de policarbonato virgen mientras explora asociaciones estratégicas en mercados de alto crecimiento.
트린세오 (NYSE: TSE)는 독일 스타드 시설에서 다이팍 화학 기술(Deepak Chem Tech) 자회사에 인도에서 사용하기 위한 폴리카보네이트 기술 라이센스와 폴리카보네이트 생산 장비를 제공하는 계약을 발표했습니다. 계약 총가치는 5,250만 달러이며, 2024년 말까지 약 900만 달러와 2025년 상반기까지 2,100만 달러의 지불이 예상되며, 이는 일정한 이정표에 따라 달라질 수 있습니다. 이 자산 처분 이후, 트린세오는 스타드 사이트에서 철수하게 됩니다. 이 조치는 트린세오가 폴리카보네이트 재료의 virgin 생산을 중단하고 높은 성장세를 보이는 시장에서 전략적 파트너십을 모색하겠다는 최근 결정을 반영합니다.
Trinseo (NYSE: TSE) a annoncé des accords pour fournir une licence de technologie polycarbonate et des équipements de production de polycarbonate depuis son site à Stade, en Allemagne, à Deepak Chem Tech, une filiale de Deepak Nitrite, pour une utilisation en Inde. La valeur totale des accords s'élève à 52,5 millions de dollars, avec des paiements prévus d'environ 9 millions de dollars d'ici la fin de 2024 et 21 millions de dollars dans la première moitié de 2025, sous réserve de jalons. Suite à cette cession d'actifs, Trinseo quittera le site de Stade. Ce mouvement s'inscrit dans la décision récente de Trinseo de se retirer de la production de polycarbonate vierge tout en explorant des partenariats stratégiques sur des marchés à forte croissance.
Trinseo (NYSE: TSE) hat Vereinbarungen bekannt gegeben, um eine Lizenz für Polycarbonattechnologie sowie Produktionsmaschinen für Polycarbonat aus seinem Werk in Stade, Deutschland, an Deepak Chem Tech, eine Tochtergesellschaft von Deepak Nitrite, für die Nutzung in Indien bereitzustellen. Der Gesamtwert der Vereinbarungen beträgt 52,5 Millionen US-Dollar, mit erwarteten Zahlungen von etwa 9 Millionen US-Dollar bis Ende 2024 und 21 Millionen US-Dollar in der ersten Hälfte von 2025, abhängig von bestimmten Meilensteinen. Nach dieser Vermögensveräußertung wird Trinseo das Werk in Stade schließen. Diese Maßnahme steht im Einklang mit Trinseos kürzlicher Entscheidung, die Produktion von frischem Polycarbonat einzustellen und strategische Partnerschaften in wachstumsstarken Märkten zu erkunden.
- Agreement value of $52.5 million for technology license and equipment sale
- Strategic expansion into high-growth Indian market
- Monetization of assets following exit from virgin polycarbonate production
- Complete exit from Stade, Germany facility
- Discontinuation of virgin polycarbonate production business
Insights
The
The exit from the Stade facility should reduce operational costs and improve capital efficiency. The technology licensing component creates a potential recurring revenue stream while the partnership with Deepak opens doors to the growing Indian market. However, the delayed payment schedule and site exit costs need careful consideration for their impact on short-term financials.
“While Trinseo recently announced its decision to exit virgin polycarbonate production, our polycarbonate technology is highly valued and the manufacturing equipment in Stade,
The total value of the combined agreements is
About Trinseo
Trinseo (NYSE: TSE), a specialty material solutions provider, partners with companies to bring ideas to life in an imaginative, smart, and sustainably focused manner by combining its premier expertise, forward-looking innovations, and best-in-class materials to unlock value for companies and consumers.
From design to manufacturing, Trinseo taps into decades of experience in diverse material solutions to address customers’ unique challenges in a wide range of industries, including building and construction, consumer goods, medical and mobility.
Trinseo’s dedicated employees bring endless creativity to reimagining the possibilities with clients all over the world from the company’s locations in
Cautionary Note on Forward-Looking Statements
This Press Release may contain forward-looking statements including, without limitation, statements concerning plans, objectives, goals, projections, forecasts, strategies, future events or performance, and underlying assumptions and other statements, which are not statements of historical facts or guarantees or assurances of future performance. Forward-looking statements may be identified by the use of words like “expect,” “anticipate,” “believe,” “intend,” “forecast,” “outlook,” “will,” “may,” “might,” “see,” “tend,” “assume,” “potential,” “likely,” “target,” “plan,” “contemplate,” “seek,” “attempt,” “should,” “could,” “would” or expressions of similar meaning. Forward-looking statements reflect management’s evaluation of information currently available and are based on the Company’s current expectations and assumptions regarding its business, the economy, its current indebtedness, accessibility of debt markets, and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. Factors that might cause future results to differ from those expressed by the forward-looking statements include, but are not limited to, our ability to implement and complete the sale of polycarbonate production equipment to the Deepak Group, including meeting certain milestones in the sale agreement; our ability to successfully implement proposed restructuring initiatives and to successfully generate cost savings and increase profitability through such initiatives; our ability to successfully execute our business and transformation strategy; increased costs or disruption in the supply of raw materials; deterioration of our credit profile limiting our access to commercial credit; increased energy costs; compliance with laws and regulations impacting our business; any disruptions in production at our chemical manufacturing facilities, including those resulting from accidental spills or discharges; conditions in the global economy and capital markets; our current and future levels of indebtedness and ability to service our debt; our ability to meet the covenants under our existing indebtedness; our ability to generate cash flows from operations; and those discussed in our Annual Report on Form 10-K, under Part I, Item 1A —”Risk Factors” and elsewhere in our other reports, filings and furnishings made with the
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Trinseo Contact: Bee van Kessel
Tel: +41 44 718 3685
Email: bvankessel@trinseo.com
Source: Trinseo
FAQ
What is the value of Trinseo's (TSE) polycarbonate technology and equipment sale to Deepak?
What assets is Trinseo (TSE) selling from its Stade, Germany facility?
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