Trinseo (NYSE: TSE), a global materials solutions provider and manufacturer of plastics, latex binders and synthetic rubber, recently announced it will cease manufacturing operations for its Latex Binders Business at Livorno, Italy.
Trinseo’s decision to implement this capacity reduction is in response to SB latex market conditions within Europe. In particular, the European paper coatings industry is seeing a significant decline in demand ultimately impacting the SB latex market.
“As the paper market continues to decline in Italy and across Europe, rationalization of SB latex assets is necessary to maintain the competitiveness of our Latex Binders business,” said Jan Muller, Global Business Director for Latex Binders. “This change will bring our production capacity more closely into balance with demand for SB latex in paper coating applications.”
The rationalization follows similar moves in 2013, when Trinseo reduced European latex capacity by 80,000 dry metric tonnes through asset changes at its sites in Hamina, Finland; Rheinmunster, Germany; and Terneuzen, The Netherlands.
“The Latex Binders business is, and will continue to be, strategically important for Trinseo. It’s a business in which we will continue to invest for sustainable growth, particularly related to Adhesives and Construction applications,” said Hayati Yarkadas, Senior Vice President and Business President for Trinseo Performance Materials. “Our vision for the Latex Binders business remains unchanged: to drive growth through innovation, customer intimacy and collaboration.”
Employees and customers in Italy were notified in late August, manufacturing operations are expected to cease approximately around October 6, 2016. Trinseo respects and will follow the applicable processes in Italy, working with the union, industrial association, and government authorities.
Trinseo (NYSE:TSE) is a global materials solutions provider and manufacturer of plastics, latex binders, and synthetic rubber with a focus on delivering innovative, sustainable, and value-creating products that are intrinsic to our daily lives. Trinseo is dedicated to making a positive impact on society by partnering with like-minded stakeholders, and supporting the sustainability goals of our customers in a wide range of end-markets including automotive, consumer electronics, appliances, medical devices, packaging, footwear, carpet, paper and board, building and construction, and tires. Trinseo had approximately $3.8 billion in net sales with 2,700 employees globally in 2019. For more information, please visit: www.trinseo.com.
This press release may contain “forward-looking statements” including, without limitation, statements concerning plans, objectives, goals, projections, expectations, strategies, future events or performance, and underlying assumptions and other statements, which are not statements of historical facts. Forward-looking statements may be identified by the use of words like “expect,” “estimate,” “will,” “may,” or expressions of similar meaning. Forward-looking statements reflect management’s evaluation of information currently available and are based on the Company’s current expectations and assumptions regarding the impact from the COVID-19 pandemic, the Company’s business, the economy and other future conditions. Specific factors that could cause future results to differ from those expressed by the forward-looking statements include, but are not limited to, risks related to the ongoing impact of the COVID-19 pandemic and those discussed in the Company’s Annual Report for the year ended December 31, 2019 filed with the Securities and Exchange Commission (“SEC”), in subsequent Quarterly Reports on Form 10-Q and in other filings and furnishings made by the Company with the SEC from time to time. Other unknown or unpredictable factors could also have material adverse effects on the Company’s performance. As a result of these or other factors, the Company’s actual results may differ materially from those contemplated by the forward-looking statements. The forward-looking statements included in this press release are made only as of the date hereof and are not a guarantee of future performance. The Company undertakes no obligation to publicly update or revise any forward-looking statement as a result of new information, future events or otherwise, except as otherwise required by law.