Trinseo Announces Potential Closure of Boehlen, Germany Styrene Plant

Rhea-AI Summary

Trinseo (NYSE: TSE) has commenced an information and consultation process with its Works Council regarding the potential closure of its styrene monomer production facility in Boehlen, Germany, which has a capacity of 300 kilotons. The site recorded a loss of approximately $30 million over the past year due to high energy costs and low customer demand. CEO Frank Bozich noted the challenges facing the facility and indicated that closure could enhance profitability and support the company's sustainability goals for 2030.

Positive

• Potential closure of the Boehlen facility may improve overall profitability for Trinseo.
• Closure aligns with Trinseo's sustainability goals for 2030, as the facility is one of its most carbon-intensive plants.

Negative

• Boehlen facility generated a loss of approximately $30 million in the last four quarters.
• The facility's cost position is adversely affected by high energy costs and reduced customer demand.

WAYNE, Pa.--(BUSINESS WIRE)-- Trinseo (NYSE: TSE), a specialty material solutions provider, today announced it has initiated an information and consultation process with the Works Council of Trinseo Deutschland GmbH regarding the potential closure of its styrene monomer production site in Boehlen, Germany. The facility, which has a nameplate annual capacity of 300 kilotons, generated negative profitability of approximately $30 million over the last four quarters ending Q2 2022.

Frank Bozich, President and Chief Executive Officer of Trinseo, commented, “Given the current economic outlook of higher inflation, lower customer demand and elevated energy costs, we are evaluating asset optimization across our portfolio.”

Bozich continued, “The cost position of the Boehlen facility is challenged due to the current energy cost environment in Europe as well as the facility’s smaller scale, and it’s difficult to envision significant earnings improvement at the site in the near to medium term. Therefore, we have decided to evaluate the potential closure of this plant. In addition to improved profitability for Trinseo, we believe a closure will aid in achieving our 2030 sustainability goals, as Boehlen is one of our most carbon intensive plants.”

About Trinseo

Trinseo (NYSE: TSE) a specialty material solutions provider, partners with companies to bring ideas to life in an imaginative, smart, and sustainability-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 consumer goods, mobility, building and construction, and medical. Trinseo’s approximately 3,400 employees bring endless creativity to reimagining the possibilities with clients all over the world from the company’s locations in North America, Europe, and Asia Pacific. Trinseo reported net sales of approximately $4.8 billion in 2021. Discover more by visiting www.trinseo.com and connecting with Trinseo on LinkedIn, Twitter, Facebook and WeChat.

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Trinseo

Andy Myers

Tel: +1 610-240-3221

Email: aemyers@trinseo.com

Source: Trinseo

FAQ

What is Trinseo planning for its Boehlen facility?

Trinseo is evaluating the potential closure of its styrene monomer production site in Boehlen, Germany.

What financial impact has the Boehlen facility had?

The Boehlen facility reported a loss of approximately $30 million over the last four quarters.

What are the reasons for the potential closure of the Boehlen plant?

The closure is considered due to high energy costs, low customer demand, and the facility's negative profitability.

How does the closure align with Trinseo's sustainability goals?

The closure would aid Trinseo in achieving its 2030 sustainability goals as the Boehlen plant is one of the most carbon-intensive facilities.