Trinseo Completes Strategic Network Optimization Initiative with Closure of Terneuzen, the Netherlands Styrene Manufacturing Operations
30 Octubre 2023 - 7:29AM
Business Wire
- Closure effective November 1, 2023
- Follows previously announced closures of PMMA sheets operations
in Bronderslev, Denmark, Belen, New Mexico and extruded sheets line
in Rho, Italy
- Supports continued transformation of the company’s portfolio to
focus on sustainability-driven innovation and a further optimized
global operating network
Trinseo (“Trinseo” or “the Company”) (NYSE: TSE), a specialty
material solutions provider, today announced its decision to
discontinue operations at its ethylbenzene styrene monomer (EBSM)
manufacturing facility in Terneuzen, the Netherlands. This decision
was made following the completion of joint negotiations with the
Works Council in Terneuzen. The plant is scheduled to officially
cease operations in November 2023. With the closure of the EBSM
facility, the company will purchase of all of its styrene needs
from third party suppliers to support its downstream
businesses.
The Company also recently announced the closure of its PMMA
sheet operations in Bronderslev, Denmark, Belen, New Mexico, and
Rho, Italy, as well as cost saving measures including headcount and
other reductions. Materials produced at the closed PMMA sheet
plants will now be produced by other facilities within the global
network, primarily Saint-Avold, France, and Florence, Kentucky,
USA.
In aggregate, these initiatives are expected to result in annual
cost savings of approximately $75 million. The anticipated future
cash payments associated with these actions are approximately $50
million, with $35 million of this expected to be incurred in
2024.
“Decisions like this that impact the livelihoods of our
colleagues are never easy, and this decision in no way reflects on
the capabilities of our dedicated teammates in Terneuzen, or at
other operations that were part of this optimization effort,” said
CEO Frank Bozich. “Given reduced European demand and global styrene
capacity additions, we believe that we will be able to support our
downstream business effectively through market purchases with lower
carbon, capital and energy intensity for the foreseeable future,”
added Bozich.
These latest restructuring actions, in combination with lower
natural gas hedge losses, are expected to result in a sequential
profitability improvement of $100 million in 2024.
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 approximately 3,300 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 $5.0 billion
in 2022. Discover more by visiting www.trinseo.com and connecting
with Trinseo on LinkedIn, Twitter, Facebook and WeChat.
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available and are based on our current expectations and assumptions
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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 successfully execute our business and transformation
strategy; increased costs or disruption in the supply of raw
materials; increased energy costs; our ability to successfully
implement proposed restructuring initiatives, including the closure
of certain plants and product lines, and to successfully generate
cost savings and increase profitability; compliance with laws and
regulations impacting our business; conditions in the global
economy and capital markets; our ability to meet the covenants
under our existing indebtedness; our ability to successfully
investigate and remediate chemical releases on or from our sites,
make related capital expenditures, reimburse third-party cleanup
costs or settle potential regulatory penalties or other claims; and
those discussed in our Annual Report on Form 10-K, under Part I,
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factors, our actual results, performance or achievements may differ
materially from those contemplated by the forward-looking
statements. Therefore, we caution you against relying on any of
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included in this press release are made only as of the date hereof.
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version on businesswire.com: https://www.businesswire.com/news/home/20231030702069/en/
Press: Brian Risinger brisinger@trinseo.com + 1 704-460-1827
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