Trinseo Announces Agreement to Sell Polycarbonate Technology License and Stade, Germany Polycarbonate Assets to Deepak Chem Tech Limited
13 November 2024 - 3:00PM
Business Wire
Trinseo (NYSE: TSE) (Trinseo or “the Company”), a specialty
materials solutions provider, today announced it has entered into
agreements to supply a polycarbonate technology license as well as
all proprietary polycarbonate production equipment in Stade,
Germany to a wholly owned subsidiary of Deepak Nitrite Limited
(Deepak) for use in India. Deepak, headquartered in Vadodara,
Gujarat, India, is a multi-division and multi-product chemical
intermediates company.
“While Trinseo recently announced its decision to exit virgin
polycarbonate production, our polycarbonate technology is highly
valued and the manufacturing equipment in Stade, Germany, can be
utilized in India by Deepak,” said Frank Bozich, President and
Chief Executive Officer of Trinseo. “These are the initial steps of
a strategic, collaborative partnership with Deepak, as we explore
additional opportunities to leverage our technology portfolio and
expand in higher-growth areas such as India.”
The total value of the combined agreements is $52.5 million. The
Company expects to receive approximately $9 million by the end of
2024 and an additional approximately $21 million in the first half
of 2025, subject to key milestones. With this disposition of the
manufacturing assets in Stade, Germany, the Company has decided to
exit the site.
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 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 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 U.S. Securities and Exchange Commission
from time to time. As a result of these or other factors, the
Company’s 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.
The Company undertakes 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.
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version on businesswire.com: https://www.businesswire.com/news/home/20241113882702/en/
Trinseo Contact: Bee van Kessel Tel: +41 44 718 3685 Email:
bvankessel@trinseo.com
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