Trinseo, a leading manufacturer and seller of plastics and latex binders, has recently approved a restructuring plan aimed at optimizing its sheet network for polymethyl methacrylate (PMMA), commonly known as acrylic or plexiglass. The company’s board gave the green light to these changes earlier this month, with the majority of them expected to be completed by the end of 2024.
Plant Closures and Workforce Reductions
As part of the restructuring, Trinseo plans to shut down several plants and product lines. The PMMA cast sheets plant located in Bronderslev, Denmark, as well as the batch polyester tray casting plant in Belen, N.M., and the PMMA extruded sheet production line in Rho, Italy, are all slated for closure. Additionally, the closure of a styrene plant in Terneuzen, the Netherlands, is pending final approval from the board.
Trinseo’s restructuring plan also includes workforce reductions. To streamline operations and improve overall efficiency, the company will be making strategic adjustments.
Financial Outlook and Charges
Trinseo anticipates total restructuring charges amounting to $22 million to $27 million. These charges will cover various aspects of the restructuring plan. The severance package for affected employees is estimated to be around $10 million to $12 million. Asset-related charges, primarily for accelerated depreciation, are expected to reach $8 million to $9 million. Additionally, approximately $2 million to $4 million will be allocated for decommissioning and demolition costs, while approximately $1 million to $3 million will be attributed to other related expenses.
The largest portion of these charges, ranging from $19 million to $24 million, is anticipated to be incurred in 2023. The remaining costs are expected to be incurred throughout 2024. The cash amount, primarily driven by severance benefits, is projected to be approximately $12 million to $14 million. Trinseo aims to finalize these charges by the end of 2024.
