Page 151 - CW E-Magazine (26-3-2024)

News from Abroad

RESTRUCTURING
Trinseo to close polycarbonate facility in Germany;

puts stake in Americas Styrenics on the block

Trinseo, a US-based polymer and Styrenics LLC (AmSty), a joint venture
chemicals firm, has initiated consul- with Chevron Phillips Chemical
tations with workers representatives Company LP.
regarding the potential closure of its
virgin polycarbonate (PC) production As part of its transformation stra-
site in Stade, Germany. The company tegy, the company had previously
expects to seek board approval of the announced its intent to divest its styrenics
closure this year following the con- businesses with a focus on selectively
sultation process. If an agreement is marketing individual assets or regional
reached, Trinseo will no longer pro- businesses. AmSty was established in
duce virgin PC and will obtain PC for at this location,” said the company’s 2008 and is part of Trinseo’s regional
its downstream businesses entirely via CEO, Mr. Frank Bozich. styrenics businesses operating in the
external purchases. In comparison to Americas.
2023 results, the action is expected to In the third quarter 2023 earnings
increase annual profitability by $15-mn call, the company identified Stade as a Any proceeds from the sale are
to $20-mn. potential location for a PC dissolution expected to be used to pay down a portion
facility as part of its commitment to the of the recently issued $1.077-bn of term
“Unfortunately, we continue to see integration and application of modern loans maturing in 2028.
demand soften, and price declines due recycling technologies. The company
to the oversupply caused by offshore has already opened a PC dissolution “By executing the contractual
producers pushing material into the pilot facility in Terneuzen, the ownership exit provision, we have a clear
EMEA market. We anticipate these Netherlands. pathway to divest our interest in the
conditions to continue in 2024 and joint venture. We expect the exit pro-
beyond. Additionally, our fixed operating Exit from styrenics jv cess to lead to a definitive arrangement
costs at Stade are significant, placing a Trinseo has also begun the sale pro- no later than early 2025,” informed
further strain on our financial viability cess for its 50% ownership in Americas Mr. Bozich.

BETTER TIMES AHEAD
Lanxess expects earnings improvement for fiscal

year 2024

The fiscal year 2023 was tough amounted to €6.714-bn, down 17.0% two segments influenced selling prices.
for the German speciality chemicals from the previous year’s figure Earnings in the Consumer Protection
company Lanxess – given the multiple of €8.088-bn. segment saw only a comparatively
crises faced by the German chemical moderate decline. The contribution
industry of weak demand, inventory The weaker demand and the asso- from the Microbial Control business
reduction by customers, high energy ciated reduction in sales volumes as acquired from IFF at the beginning of
prices in Germany, and geopolitical well as higher idle costs led to a signi- July 2022 had a positive effect.
tensions. For the current year, however, ficant earnings decline, primarily in
the Group expects a moderate increase the company’s Specialty Additives and “German chemistry and we at
in earnings. Advanced Intermediates segments. In Lanxess have never seen a year of crises
addition, lower procurement prices like this before. But we are doing all
Group sales in fiscal year 2023 for raw materials and energy in these we can to make it through this phase as

Chemical Weekly March 26, 2024 151

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