Trinseo Announces Major European Restructuring, Suspends Dividend and Considers German Plant Closure
Reuters
Oct 06
Trinseo Announces Major European Restructuring, Suspends Dividend and Considers German Plant Closure
**Trinseo Announces Major Corporate Reorganization in Europe** WAYNE, Pa.-Trinseo plc $(TSE)$, a global specialty materials provider, has unveiled a series of strategic operational changes aimed at optimizing its European operations and improving long-term profitability. Key measures include the closure of Trinseo's MMA production facilities in Italy and the potential closure of its polystyrene production site in Schkopau, Germany, with plans to consolidate polystyrene manufacturing in Tessenderlo, Belgium. The company anticipates that these actions will result in a $10 million annual improvement in profitability and expects associated pre-tax charges of $80 million to $100 million, with most related cash payments completed by 2028. Additionally, Trinseo has indefinitely suspended its quarterly dividend to save approximately $1.5 million annually. CEO Frank Bozich cited ongoing industry challenges in Europe, such as weak demand and high energy prices, as drivers behind the restructuring. The company emphasized its commitment to supporting affected employees and maintaining strong partnerships worldwide.
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