Berwyn, Pennsylvania – Trinseo SA has announced a ‘reduction in force’ in its synthetic rubber segment in response to a slowdown in the tire market.
The measures will reduce costs by about $2 million (€1.75 million) in 2019, and $3 million/year thereafter, Trinseo said in a 22 Jan financial update.
Trinseo did not give details of the planned actions but posted pre-tax charges of $5 million against them in the fourth quarter.
The restructuring will “more closely align the cost structure of synthetic rubber with the current tire market environment,” said Chris Pappas, outgoing Trinseo president and CEO.
Trinseo, which also makes plastics and latex binders, said its Q4 2018 results would be well below previous guidance due to several factors towards the end of last year.
These included “rapidly declining” feedstock prices, inventory destocking linked to economic slowdown in China and continued weakness in the automotive and tire markets.
“The severity of these weak market conditions in November and December was greater than previously expected,” according to Trinseo.
ERJ is requesting further details from Trinseo about the cost-saving measures in its rubber business.