Trinseo SA has decided against the divestment of its polycarbonate (PC) resin operations in Stade, Germany, according to the company CEO and president Frank Bozich.
The Bervyn, Pennsylvania-based supplier of plastics, synthetic rubber and latex binders disclosed in May that it was evaluating “strategic alternatives” for the PC business in northern Germany, which is Trinseo’s only polycarbonate manufacturing facility globally.
“Our primary goal of this evaluation was to ensure that we have a reliable and cost-effective supply of high-quality polycarbonate for our higher margin compounding businesses, which consumes approximately 40 percent of our polycarbonate production,” explained Bozich during an earnings call Nov. 4.
After exploring "numerous options," the company concluded that the best option was to remain in operation at the site, which would offer “significant structural and raw material cost savings.”
The savings, according to Bozich, will be a significant contributor to the $20 to $30 million savings that the company identified in a recent restructuring measure.
The move will also better support Trinseo’s growing sales to the higher margin medical and consumer electronics applications.
The Stade plant, in operation since 1990, includes a polymer production unit and a compounding facility, manufacturing approximately 120 polycarbonate products for various applications, according to the Trinseo website.
The plant, according to Trinseo has roughly 3 percent of total global capacity, and has to compete with increasing supply from China at a time of low demand.
Trinseo drops sale of German PC business
Trinseo's Stade production plant
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