By Connor Hart

Trinseo will permanently close two facilities in Italy as part of a strategic plan to cut costs and improve operations amid ongoing challenges in the European chemical industry.

The disclosure comes after the plastics and latex binders company on Friday indefinitely suspended its quarterly dividend of one cent a share.

Shares slid 5.8% to $2.20 in premarket trading Monday. Through Friday's close, shares have lost nearly two-thirds of their value over the past year.

Trinseo said before the opening bell that it will close its methyl methacrylate production operations at its Rho, Italy, facility, moving to source the compound, which is used to make acrylic plastics and resins, from third-party producers instead. The company will also cease its acetone cyanohydrin production operations in Porto Marghera, Italy.

Trinseo said it will work closely with officials to ensure the closures comply with all relevant legal requirements, and that workforce reductions comply with local regulatory requirements. The company didn't say how many employees will be laid off as a result of the closures.

The closures are expected to be completed by the end of the year, resulting in an approximately $20 million improvement to annualized profitability, as well as an about $10 million reduction in capital expenditures, the company said.

The company expects to record $80 million to $100 million in pre-tax charges, stemming from employee-related costs, asset-related and impairment charges and costs to exit-production activities, it said. Cash payments associated with the closures are anticipated to total up to $50 million by the end of 2028.

Trinseo said it is additionally looking into ceasing polystyrene production at its Schkopau, Germany, production site.

"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," Chief Executive Frank Bozich said.

Write to Connor Hart at connor.hart@wsj.com

(END) Dow Jones Newswires

October 06, 2025 08:59 ET (12:59 GMT)

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