Trinseo closes Italy facilities, suspends dividend amid European challenges

Trinseo PLC (NYSE: TSE) announced the permanent closure of methyl methacrylate production operations at its Rho, Italy facility and acetone cyanohydrin production operations in Porto Marghera, Italy. The specialty material solutions provider will source MMA feedstock from third-party producers while maintaining polymethyl methacrylate operations and its depolymerization pilot facility in Rho.

The closures are expected to be completed by year-end and generate an annualized profitability improvement of approximately $20 million and reduce annual capital expenditures by approximately $10 million. The company anticipates pre-tax charges ranging from $80 million to $100 million for employee-related costs, asset impairments, and exit activities, with cash payments of $40 million to $50 million expected through 2028.

Trinseo has initiated consultation processes regarding the potential closure of polystyrene production at its Schkopau, Germany site, with plans to consolidate remaining PS production at its Tessenderlo, Belgium location. This action could result in an additional $10 million in annualized profitability improvement if agreements are reached with the works council.

The company's board voted to indefinitely suspend its quarterly dividend of $0.01 per share, saving approximately $1.5 million annually.

"These plans are a by-product of the continuing challenges we and our peers in the European chemical industry have been facing for the past several years, including weak end market demand, high energy prices, and increased imports from Asia," said President and CEO Frank Bozich.

Trinseo reported net sales of approximately $3.5 billion in 2024, according to the press release statement.

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