Trinseo, a leading provider of specialty materials solutions, announced new restructuring initiatives aimed at positioning the company for long-term growth, improved profitability, and increased cash flow. As of October 1, 2024, Trinseo will merge the management of its Engineered Materials, Plastics Solutions, and Polystyrene divisions, resulting in workforce reductions due to the consolidation of business management and support functions. These restructuring efforts began in Q3 2024 and are expected to be largely completed by the end of 2025. The company anticipates annual cost savings of $30 million, with $25 million realized in 2025 and full savings by the end of 2026.
Francesca Reverberi, SVP of Engineered Materials, will lead the newly combined divisions, while Bregje “Bee” Van Kessel, who currently oversees Plastics Solutions and Polystyrene, will transition to SVP of Corporate Finance and Investor Relations, reporting to CFO David Stasse. Han Hendriks, head of technology and innovation, will expand his role to include oversight of sustainability as Chief Technology and Sustainability Officer.
Trinseo also announced its decision to exit virgin polycarbonate production at its Stade, Germany, facility. Production will cease by January 2025, following consultations with the relevant works councils, and related severance payments will be completed by the end of 2026. Moving forward, Trinseo will source polycarbonate for its downstream products from external suppliers, leading to an expected annual profitability improvement of $15 to $20 million compared to in-house manufacturing.
“These actions are based on careful analysis of our portfolio and market trends, as well as the competitive landscape,” said Trinseo President and CEO Frank Bozich. “We believe this streamlined structure will enhance our ability to grow strategically while improving customer service and reducing costs.”
The company expects to incur pre-tax restructuring charges of $23 to $28 million, primarily from severance costs related to the Stade facility closure.
Bozich acknowledged the difficulty of these decisions, stating, “These changes, though necessary, are particularly hard because of their impact on our colleagues. We deeply value their contributions and are committed to supporting them through this transition. We also appreciate the resilience and focus of our global team as we navigate these challenges together.
