Materials firm Trinseo is ending production of polycarbonate resin and combining management of three business units in an attempt to improve financial results.
In a Sept. 30 news release, officials with Trinseo in Wayne, Pa., said the firm will stop PC resin production in Stade, Germany, by January. Severance and related benefit payments to employees will be complete by the end of 2026.
Once operations have ceased, most of Trinseo's PC needs for its downstream, differentiated compounded products will be purchased from external suppliers, including its licensees. This purchasing change is expected to improve the site's profitability by $15 million to $20 million per year.
Also, as of Oct. 1, Trinseo is combining management of its engineered materials, plastics solutions and polystyrene businesses. These actions, which will eliminate an unspecified number of management and support jobs, began in the third quarter of 2024 and are expected to be completed by the end of 2025.
These moves are expected to save Trinseo $30 million per year by 2026. The newly combined engineered materials, plastics solutions and PS businesses will be led by Francesca Reverberi, who's currently senior vice president of engineered materials. Current plastics solutions and PS business head Bregje Van Kessel will become senior vice president of corporate finance and investor relations.
"These measures are the result of a thoughtful analysis of our portfolio and industry trends, combined with an understanding of the global competitive environment," President and CEO Frank Bozich said.
"We believe they will result in a more streamlined organizational structure that will fuel our ability to continue to grow strategically, while improving service to our customers and reducing costs," he added.