Trinseo is once again looking at the potential closure of its loss-making styrene production plant in Böhlen, Germany. The company says it is currently consulting with the local works council.
The facility, which has a nameplate annual capacity of 300,000 metric tons, generated negative profitability of approximately $30 million over the last four quarters ending Q2 2022.
President and CEO Frank Bozich said that given the current economic outlook of higher inflation, lower customer demand and elevated energy costs, the company is evaluating asset optimization across its portfolio.
“The cost position of the Böhlen 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,” he continued. “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 Böhlen is one of our most carbon-intensive plants.”