API deal opens opportunities for Trinseo

MUSSOLENTE, Italy—Trinseo S.A.'s acquisition of API Applicazioni Plastiche Industriali S.p.A. presents exciting opportunities for Trinseo, an international manufacturer of plastics, synthetic rubber and latex binders, according to one of its top executives.

"The acquisition brings a new family of products to our plastics business," said Hayati Yarkadas, Trinseo senior vice president and business president for performance materials. "API has very strong leadership and very good products. We felt that their soft thermoplastic polymers, along with our rigid polymers, would make us a one-stop shop for our customers."

With the acquisition of API's manufacturing and research facility in Mussolente, Trinseo now has 15 factories in 15 countries, with established sales and marketing teams in 27 countries. Trinseo employs nearly 2,200 across the globe, according to company fact sheets.

Trinseo had $3.7 billion in worldwide sales in 2016, the majority of which—$2.1 billion—is in its Performance Materials division, the company said.

In Performance Materials, Trinseo offers a wide portfolio, including emulsion and solution styrene-butadiene rubber, butadiene rubber, styrene-butadiene and styrene-acrylate latex, automotive plastics and plastics in consumer essential markets, including electrical, lighting, medical devices and consumer electronics.

Trinseo is a leading supplier of SBR and BR, with a world-class manufacturing platform in Europe, according to the company. It claims to be the technology leader in SSBR and to be the global leader in styrene-butadiene SB latex, with 25 percent of the global market share.

Trinseo celebrated the 80th anniversary of production for both its Styron polystyrene and its synthetic rubber in June.

The API name and all current API management will remain, according to Yarkadas.

"They are a conduit between Trinseo and API," he said. "They have access to everything we have, and vice versa."

Trinseo has a 40 percent market share in automotive plastics in the U.S. and Europe, and API's thermoplastic elastomer technology will allow Trinseo to expand its share in such auto parts as gearshifts and door panels, Yarkadas said. The acquisition also will give Trinseo new synergies and applications in surgical products, he said.

One market API has opened for Trinseo is high-end European luxury footwear, including Prada and Gucci, according to Yarkadas. API has more than 75 percent of that market, he said.

"This will enable us to unlock the potential in existing footwear markets and other segments," he said.

Combining API's R&D capabilities with Trinseo's offers Trinseo a number of opportunities, according to Yarkadas. It allows the company to optimize the properties of thermoplastics and rigid polymers, and also customize applications for customers in their own shops, he said.

"Trinseo will provide API with more resources in application development, research and development, and technical services," he said.

Along with its main businesses, Trinseo is a 50-50 partner with Chevron Phillips Chemical Co. L.P. Americas, a joint venture that is a leading integrated producer of polystyrene and styrene monomer.

"In terms of joint ventures, we will seek to create them where it makes sense," Yarkadas said.

Going forward, Trinseo's focus will be to expand its rubber business, especially SSBR, according to Yarkadas. "The SSBR market is growing 10 percent per year, as the market for high-performance tires expands," he said.

Trinseo is expanding production at its plant in Zhangjiagang, China, to meet growing local demand, according to Yarkadas. It also is expanding capacity in Terneuzen, Netherlands, for high-quality, medical-grade latex, he said.