Trinseo recently restructured its asset strategies, a press release reported. The modifications are projected to result in a yearly profit increase of $60 million in comparison to the previous quarter run rate.
“The actual timing and costs of these actions may differ from the company’s current expectations and estimates, and such differences may be material,” a recent press release states. “These charges are subject to ongoing negotiations with the works councils, industrial associations and government authorities.”
The list of changes unveiled by Trinseo include closing manufacturing functions at the styrene production facility in Boehlen, Germany, the closing of a polycarbonate production line in Stade, Germany, the expansion of the PMMA sheet manufacturing site in Matamoros, Mexico and the sheet manufacturing operation of Aristech Surfaces in Florence, Kentucky.
Trinseo projects its pre-tax sum to amount to $79 million to $89 million.
“Of this, $55 million to $61 million is expected to be incurred in the fourth quarter of 2022, with the remainder expected to be incurred through 2024,” a recent press release explains. “The cash amount of these charges is expected to be $67 million to $77 million, including approximately $40 million in 2023, with substantially all expected to be incurred through 2024.”
The company also plans to reduce the capacity limit of SB latex at Hamina.
The changes follow the recent multimillion dollar fine Trinseo received by the European Commission “related to the commission’s 2018 investigation of styrene purchasing practices in Europe. This amount was in line with our previously recorded liability and was paid in full in December 2022,” according to the press release.