Trinseo (TSE) said Monday it will permanently close its methyl methacrylate and acetone cyanohydrin production units in Italy by year-end to improve annual profitability by $20 million and cut capital spending by $10 million.

The company said it will continue operating its polymethyl methacrylate and depolymerization pilot lines in Rho and will source MMA feedstock externally from now on.

Pre-tax charges related to the Italian restructuring are expected to total between $80 million and $100 million, with related cash outlays of $40 million to $50 million by 2028, Trinseo added.

Trinseo also said it is in talks with its German works council to possibly close its polystyrene plant in Schkopau, consolidating production in Belgium and targeting $10 million in annualized savings.

The company said the moves respond to weak demand, high energy costs and rising imports in Europe, which have pressured chemical producers.

Trinseo said its board has also indefinitely suspended its $0.01 per-share dividend, a step expected to preserve $1.5 million annually.

Shares of the company were down nearly 11% in recent trading.

Price: 2.07, Change: -0.26, Percent Change: -11.15