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. 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.
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