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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 solutions 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 $3.8 billion in net sales in 2019, with 17 manufacturing sites around the world, and approximately 2,700 employees. For more information visit www.trinseo.com.

Note on Forward-Looking Statements

This press release may contain “forward-looking statements” including, without limitation, statements concerning plans, objectives, goals, projections, expectations, strategies, future events or performance, and underlying assumptions and other statements, which are not statements of historical facts. Forward-looking statements may be identified by the use of words like “expect,” “estimate,” “will,” “may,” or expressions of similar meaning. Forward-looking statements reflect management’s evaluation of information currently available and are based on the Company’s current expectations and assumptions regarding the impact from the COVID-19 pandemic, the Company’s business, the economy and other future conditions. Specific factors that could cause future results to differ from those expressed by the forward-looking statements include, but are not limited to, risks related to the ongoing impact of the COVID-19 pandemic and those discussed in the Company’s Annual Report for the year ended December 31, 2019 filed with the Securities and Exchange Commission (“SEC”), in subsequent Quarterly Reports on Form 10-Q and in other filings and furnishings made by the Company with the SEC from time to time. Other unknown or unpredictable factors could also have material adverse effects on the Company’s performance. As a result of these or other factors, the Company’s actual results may differ materially from those contemplated by the forward-looking statements. The forward-looking statements included in this press release are made only as of the date hereof and are not a guarantee of future performance. The Company undertakes 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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