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Trinseo Announces Capacity Expansion for Solution-Styrene Butadiene Rubber

Meeting growing customer demand for S-SBR in performance tires

BERWYN, Pa. - Monday, October 24, 2016

Trinseo (NYSE: TSE), a global materials solutions provider and manufacturer of plastics, latex binders and synthetic rubber, today announced that it will expand capacity for Solution-Styrene Butadiene Rubber (S-SBR). This increased investment is a direct response to rising customer demand for this critical technology, which is a key component in increasing energy efficiency, safety and durability in performance tires.

The asset upgrade at Trinseo’s world-class synthetic rubber manufacturing complex in Schkopau, Germany, will add 50 KT of S-SBR capacity, increasing the company’s global S-SBR production by 33%. This additional capacity is expected to be online in January 2018. 

“This investment is in line with Trinseo’s strategy to grow our Performance Materials businesses, in particular our S-SBR business, which has seen very strong market demand,” said Hayati Yarkadas, Senior Vice President and Business President, Performance Materials. “This expansion in Schkopau is the fastest solution to meet our customers’ growing demand for our SPRINTAN™ Rubber products, as well as next generation development grades of advanced S-SBR.”

Delivering Solutions for Sustainability and Consumer Trends
Trinseo’s SPRINTAN™ Advanced S-SBR Rubber grades provide a unique combination of properties in tires:  improved lower rolling resistance for performance and fuel efficiency, as well as wet grip and durability.  

As CO emissions regulations and tire labeling requirements continue to expand beyond the EU to other regions, there is a strong drive in the automotive industry towards energy efficient tires. As a result, consumers around the world are becoming more aware of how their choice of tires affects the fuel efficiency of their cars. This consumer focus is driving energy efficient tires as one of the most important trends in sustainability globally.

“Our expansion of S-SBR is a direct response to customers’ demand, and consistent with sustainability trends around the world,” said Samer Al-Jabi, Global Business Director for Synthetic Rubber.  “Tires with reduced rolling resistance are in demand because they make vehicles more fuel efficient, thereby reducing greenhouse gasses. SPRINTAN™ Rubber products are another example of how Trinseo’s materials are intrinsic to our customers’ products, providing technology that enables products to address global sustainability trends.”

About Trinseo

Trinseo (NYSE: TSE) is a global materials solutions provider and manufacturer of plastics, latex binders, and synthetic rubber. We are focused on delivering innovative and sustainable solution to help our customers create products that touch lives every day - products that are intrinsic to how we live our lives - across a wide range of end-markets, including automotive, consumer electronics, appliances, medical devices, lighting, electrical, carpet, paper and board, building and construction, and tires. Trinseo had approximately $4.0 billion in revenue in 2015, with 15 manufacturing sites around the world, and more than 2,200 employees. For more information visit www.trinseo.com.

Note on Forward-Looking Statements

This press release may contain “forward-looking statements” within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. Words such as “expect,” “estimate,” “project,” “budget,” “forecast,” “anticipate,” “intend,” “plan,” “may,” “will,” “could,” “should,” “believes,” “predicts,” “potential,” “continue,” and similar expressions are intended to identify such forward-looking statements. Forward-looking statements in this press release may include, without limitation, forecasts of growth, revenues, business activity, acquisitions, financings and other matters that involve known and unknown risks, uncertainties and other factors that may cause results, levels of activity, performance or achievements to differ materially from results expressed or implied by this press release. As a result of the foregoing considerations, you are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

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