Expanded polystyrene resin maker Styropek USA is ending production at its facility in Monaca, Pa. by Jan. 2025, ceasing production of its CUP and Arcel product lines, which are exclusive to the facility.
"Despite the company's efforts to better operationalize the plant, it would require significant investment to reach the required conditions to meet current market demands," a Nov. 1 news release said. "Over the last few months, leadership has engaged in numerous discussions to reach this challenging yet final decision, prioritizing Styropek's commitment to its financial stability and the interest of all stakeholders."
Operations at the facility "will be idled," the release said, and all EPS production will be transitioned to other Styropek facilities "with infrastructure better suited to accommodate future business needs."
The company's Painesville, Ohio, facility will continue to operate "and remains a key component of Styropek's long-term strategy," it added.
Styropek initially announced a "tentative" potential closure in August, saying it would give employees at least 60-days' advanced notice.
The company expects "most jobs at the facility," about 140 employees, to be impacted by the closure.
"We are confident a range of roles will still be needed during and after the wind down, including certain customer-facing functions and support roles," Stephanie Wilfong, human resource coordinator at Styropek, told Plastics News in an email at the time. "We plan to discuss the specific details of individual situations as final decisions are made."
"Management is beginning to have those conversations with individuals as needed," the release said.
Some of the employees at the facility are members of United Steelworkers. Styropek plans to meet with USW representatives as a part of the closure process.
Styropek appreciates the dedication and contributions each one of its employees has made over the past four years, and is steadfast on meeting its commitments to them, including employees represented by the United Steelworkers," Andreas Plettner, CEO of Styropek, said in the release. "The company will provide severance payments and is exploring a variety of outplacement support services."
"When we purchased the [Monaca] facility in October 2020, Styropek knew it was an acquisition of an aging facility," Plettner said in the Aug. 14 news release. "While we made progress in better operationalizing the plant during our roughly four years of operations, the industry has continued to evolve and the economics of the current EPS market, paired with our long-term goals and sustainability initiatives, make continued investment increasingly difficult."
The site is the subject of a lawsuit filed last year by PennEnvironment and Three Rivers Waterkeeper, which allege the factory is leaking plastic pellets into the Ohio River in violation of federal clean water laws.
The closure is "part of a strategic review," the company said, to help it "prioritize and focus on long-term business objectives and sustainability initiatives," including increasing its recycling capacity to 30 percent recycled content within its packaging product portfolio and/or bio-based content by 2030. It also plans to focus "more aggressively on construction solutions products, including highly energy-efficient products for thermal insulation applications."