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Trinseo to keep Boehlen styrene plant

November 17/2020

MOSCOW (MRC) -- Trinseo says feedstock supply issues that threatened the operation of its 300,000-metric tons/year styrene monomer (SM) plant in Boehlen, Germany, have been resolved, and the company is no longer evaluating strategic options for the asset, reported Chemweek.

As part of this effort, a new raw material agreement was negotiated that is expected to make the plant economically feasible along with the added benefit of operational flexibility, Trinseo says in its third-quarter earnings release.

In its first-quarter 2020 earnings release, issued in May, Trinseo said it had taken a USD38 million pre-tax charge for the impairment of certain long-lived assets in Boehlen and Schkopau, Germany. The company also said it had begun a consultation process with the Economic Council and Works Councils of Trinseo Deutschland regarding the disposition of the assets.

As MRC informed previously, Trinseo reports third-quarter net income of USD106 million, up from USD22 million in the year-ago quarter on higher margins in most segments and cost-reduction initiatives. Net income also included a USD50 million tax benefit. Revenue totaled USD752 million, down 18% year-over-year (YOY) from USD922 million on the pass-through of lower raw material costs. Sales volume was comparable YOY, says Trinseo, which cites strong demand recovery in automotive, tires, construction, and appliances. Adjusted earnings per share came to USD2.87, up from 67 cents in the year-ago quarter and well ahead of the average analyst estimate of USD1.86 as compiled by Refinitiv (New York).

SM is the main feedstock for the production of polystyrene (PS).

According to MRC's ScanPlast report, Russia's estimated consumption of PS and styrene plastics totalled 362,820 tonnes in the first nine months of 2020, down by 1% year on year. September total estimated PE consumption in Russia was 48,690 tonnes, up by 13% year on year.

Trinseo is a global materials company and manufacturer of plastics, latex and rubber. Trinseo's technology is used by customers in industries such as home appliances, automotive, building & construction, carpet, consumer electronics, consumer goods, electrical & lighting, medical, packaging, paper & paperboard, rubber goods and tires. Formerly known as Styron, Trinseo completed its renaming process in 1Q 2015. Trinseo had approximately USD3.8 billion in net sales in 2019, with 17 manufacturing sites around the world, and approximately 2,700 employees.
Author:Margaret Volkova
Tags:PS, styrene, car components, construction, Trinseo (Styron), Germany, Russia.
Category:General News
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