Materials maker Trinseo has begun the process of closing a styrene monomer plant in the Netherlands and acrylic sheet plants elsewhere in Europe.
In its second quarter earnings release, officials with Trinseo in Wayne, Pa., said that the firm "has commenced discussions" with work councils at the styrene plant in Terneuzen and at sheet plants in Europe. If the Terneuzen plant is closed, Trinseo will buy all of its styrene feedstock from outside producers.
Officials added that the "optimization" of Trinseo's acrylic sheet network in Europe could include consolidations. They also said that the firm "is currently taking measures to lower operating costs, including headcount and other reductions."
In the second quarter of 2023, Trinseo reported sales of $963 million, down 32 percent from the same quarter in 2022. The firm posted a second-quarter loss of $349 million after showing a $37 million profit in the year-ago period.
For the quarter, sales in Trinseo's Engineered Materials unit, including acrylic resin and sheet, were down 31 percent to $206 million. The unit showed adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) of $12 million, down 65 percent.
Trinseo's Plastic Solutions unit, including polycarbonate and ABS resins, saw first-quarter sales decline 25 percent to $272 million, with adjusted EBITDA plunging 46 percent to $25 million.
Trinseo's PS unit, not including its Americas Styrenics joint venture, saw sales for the quarter drop 38 percent to $192 million, with adjusted EBITDA down 74 percent to $6 million.
President and CEO Frank Bozich said in the release that, as expected, Trinseo's second quarter sales volume "was sequentially similar as general market conditions remained unchanged." He added that the firm "delivered our third consecutive quarter of increasing profitability due to the asset footprint actions and other initiatives we've put in place."
In May, Trinseo restarted the sale process for its styrenics business, changing strategy to include marketing individual assets and regional businesses included in that unit. During 2022, Trinseo attempted to sell its styrenics business, but ended those efforts because of unfavorable economic conditions. Units covered by the sale are PS resin plants in Belgium, Germany, Hong Kong and Indonesia and styrene monomer plants in Germany and the Netherlands.
Earlier this year, Trinseo sold an acrylic sheet plant in Matamoros, Mexico, to Plaskolite LLC. Trinseo also recently closed a styrene monomer plant and a PC resin line in Germany and reduced styrene butadiene latex production in Finland.
On Wall Street, Trinseo's per-share stock price began 2023 at $23.50 but closed near $14.20 on Aug. 10 for a loss of 40 percent so far in 2023.