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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), a specialty material solutions provider, partners with companies to bring ideas to life in an imaginative, smart, and sustainability-focused manner by combining its premier expertise, forward-looking innovations and best-in-class materials to unlock value for companies and consumers.

From design to manufacturing, Trinseo taps into decades of experience in diverse material solutions to address customers’ unique challenges in a wide range of industries, including consumer goods, mobility, building and construction, and medical.

Trinseo’s approximately 3,400 employees bring endless creativity to reimagining the possibilities with clients all over the world from the company’s locations in North America, Europe, and Asia Pacific. Trinseo reported net sales of approximately $4.8 billion in 2021. Discover more by visiting www.trinseo.com and connecting with Trinseo on LinkedIn, Twitter, Facebook and WeChat.

Cautionary Note on Forward-Looking Statements

This press release may contain forward-looking statements including, without limitation, statements concerning plans, objectives, goals, projections, strategies, future events or performance, and underlying assumptions and other statements, which are not statements of historical facts or guarantees or assurances of future performance. Forward-looking statements may be identified by the use of words like "expect," "anticipate," "intend," "forecast," "outlook," "will," "may," "might," "see," "tend," "assume," "potential," "likely," "target," "plan," "contemplate," "seek," "attempt," "should," "could," "would" or expressions of similar meaning. Forward-looking statements reflect management’s evaluation of information currently available and are based on our current expectations and assumptions regarding our business, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. Factors that might cause future results to differ from those expressed by the forward-looking statements include, but are not limited to, our ability to successfully execute our transformation strategy and business strategy; our ability to integrate acquired businesses; global supply chain volatility, increased costs or disruption in the supply of raw materials or increased costs for transportation of our products; the nature of investment opportunities presented to the Company from time to time; and those factors discussed in our Annual Report on Form 10-K, under Part I, Item 1A —"Risk Factors" and elsewhere in our other reports, filings and furnishings made with the U.S. Securities and Exchange Commission from time to time. As a result of these or other factors, our actual results may differ materially from those contemplated by the forward-looking statements. Therefore, we caution you against relying on any of these forward-looking statements. The forward-looking statements included in this press release are made only as of the date hereof. We undertake 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.

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