Trinseo Announces Potential Closure of Stade, Germany Virgin Polycarbonate Manufacturing Facility
15 März 2024 - 12:15PM
Business Wire
-Potential closure by the end of 2024 -Final decision
subject to consultation with Stade Works Council and in accordance
with German Law
Trinseo (“Trinseo” or “the Company”) (NYSE: TSE), a specialty
material solutions provider, today announced it has initiated an
information and consultation process with the Works Council of
Trinseo Deutschland Anlagengesellschaft mbH regarding the potential
closure of its virgin polycarbonate (“PC”) production site in
Stade, Germany. The Company expects to seek board approval of the
closure in 2024 following the Works Council consultation process.
If an agreement is reached, Trinseo will no longer produce virgin
PC and will obtain PC for its downstream businesses entirely via
external purchases. In comparison to 2023 results, the action is
expected to increase annual profitability by $15 million to $20
million.
“Unfortunately, we continue to see demand soften, and price
declines due to the oversupply caused by offshore producers pushing
material into the EMEA market. We anticipate these conditions to
continue in 2024 and beyond. Additionally, our fixed operating
costs at Stade are significant, placing a further strain on our
financial viability at this location,” said CEO, Frank Bozich.
In the third quarter 2023 earnings call, the Company identified
Stade as a potential location for a PC dissolution facility. The
Company is committed to the integration and application of modern
recycling technologies, such as PC dissolution and
depolymerization, to help customers develop more sustainable
product offerings. Trinseo is exploring numerous options for viable
locations to ensure recycling plants are both resilient and
adaptive to customer requirements. Developing commercial scale
operations in recycling remains a key pillar of the business
strategy moving forward as evidenced by the
polycarbonate-dissolution pilot facility recently opened in
Terneuzen, the Netherlands.
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 3,100 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 $3.7 billion
in 2023. Discover more by visiting www.trinseo.com and connecting
with Trinseo on LinkedIn, Twitter, Facebook, and WeChat.
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
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the use of words like “expect,” “anticipate,” “believe,” “intend,”
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“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 our
current expectations and assumptions regarding our business, the
economy, our current indebtedness, 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 successfully implement proposed restructuring
initiatives and to successfully generate cost savings through
restructuring and cost reduction 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 U.S. Securities and Exchange Commission from time to time.
As a result of these or other 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 these forward-looking
statements. The forward-looking statements included in this press
release are made only as of the date hereof. We undertake no
obligation to publicly update or revise any forward-looking
statement as a result of new information, future events or
otherwise, except as otherwise required by law.
The descriptions and statements in the document are subject to
ongoing discussions and subject to compliance with the applicable
information and consultation rights of employee representatives /
works councils.
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Trinseo Andy Myers, Investor Relations Tel: +1 610-240-3221
Email: aemyers@trinseo.com
Contact: Trinseo Brian Risinger, Corporate Communications Tel:
+1 704-460-1827 Email: brisinger@trinseo.com
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