BERWYN, Penn.—Trinseo SA is closing down its polybutadiene rubber (nickel and neodymium-PBR) unit in Schkopau, Germany, by the end of the year, according to company president and CEO Frank Bozich.
Trinseo Deutschland initiated a consultation process with employee representatives to review the future of its styrene monomer plant in Boehlen and the PBR unit in Schkopau, in March.
Speaking during the July 31 second quarter conference call, Bozich said Trinseo had decided "to move forward with the closure of the assets in Schkopau" after a thorough analysis.
According to Trinseo, the combined adjusted EBITDA of the two operations came in at negative $19.3 million in 2019.
The polybutadiene rubber line in Schkopau has a capacity of approximately 30,000 metric tons per year.
The unit was Trinseo's nickel butadiene rubber production train, which was converted in late 2017 to manufacture Nd-BR.
Trinseo said in March that it would remain committed to its other operations at the Schkopau site, including polystyrene, solution-styrene butadiene rubber (SSBR) and emulsion-styrene butadiene rubber (ESBR).
The company still is evaluating the disposition of the Boehlen site in eastern Germany, which has the capacity to produce 300,000 metric tons per year of styrene monomer.
The plant's average production during the past three years has been at the 200,000 metric tons per year mark, due to several factors, including upstream supply issues.
In 2019, production at the unit was 150,000 metric tons per year, reflecting the unplanned outages, said the Trinseo statement.