Materials firm Trinseo is selling its polycarbonate resin production assets to a company that is moving the equipment to India.
Wayne, Pa.-based Trinseo announced Nov. 13 that it has entered into agreements to supply a PC technology license as well as all proprietary PC production equipment in Stade, Germany, to a wholly owned subsidiary of Deepak Nitrite Ltd.
Deepak, which is based in Vadodara, India, is a chemical intermediates company.
"While Trinseo recently announced its decision to exit virgin polycarbonate production, our polycarbonate technology is highly valued and the manufacturing equipment in Stade, Germany, can be utilized in India by Deepak," said Frank Bozich, president and CEO of Trinseo, in a news release.
"These are the initial steps of a strategic, collaborative partnership with Deepak, as we explore additional opportunities to leverage our technology portfolio and expand in higher-growth areas such as India," Bozich said.
The total value of the combined agreements is $52.5 million. When Deepak takes over the assets, Trinseo will exit the Stade site.
Trinseo had announced on Sept. 30 that it would stop PC resin production in Stade 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.