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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. |
