Trinseo to close US latex plant, upgrade another
Berwyn, Pennsylvania – Trinseo plans to close its styrene butadiene latex plant in Gales Ferry, Connecticut, due to continuing declines in the coated paper industry in North America.
The closure, which impact 17 employees, will reduce costs in the business by a $5 million (€4.4 million) run rate in 2016, the company said in a 17-Sept press release.
In the meantime, Trinseo will make capital investments at its Midland, Michigan plant to enhance production and storage capacity there.
Customers from Gales Ferry will be sourced from Trinseo’s other plants in Midland, Michigan, and Dalton, Georgia.
"We are taking this action to reduce our cost structure in our North America business, in response to changing market demand for coated paper," said Jan Muller, global business director binders.
"These changes will improve our cost position in North America and increase our asset utilisation rates to approximately 85 percent."
Production in Connecticut will cease at the end of 2015, followed by decommissioning and demolition in 2016.