WAYNE, PA — Trinseo (NYSE: TSE) has unveiled a series of restructuring initiatives aimed at strengthening the company’s growth potential and financial performance. Beginning October 1, 2024, Trinseo will consolidate the management of its Engineered Materials, Plastics Solutions, and Polystyrene divisions. This reorganization will streamline operations, resulting in workforce reductions as business management roles and support functions are integrated. These changes, initiated in the third quarter of 2024, are expected to be largely completed by the end of 2025, with projected annual cost savings reaching $30 million. An estimated $25 million in savings is anticipated for 2025, with full savings realized by the end of 2026.
Francesca Reverberi, currently Senior Vice President of Engineered Materials, will lead the newly merged business units. Bregje “Bee” Van Kessel, who currently oversees the Plastics Solutions and Polystyrene sectors, will transition to Senior Vice President of Corporate Finance and Investor Relations, reporting to David Stasse, Executive Vice President and Chief Financial Officer. Additionally, Han Hendriks will expand his role as Chief Technology and Sustainability Officer to include oversight of the company’s sustainability initiatives.
In a significant move, Trinseo has decided to cease virgin polycarbonate production at its Stade, Germany facility. Following discussions with works councils, production is set to end by January 2025, with severance and related benefits to be finalized by the end of 2026. Post-closure, Trinseo will source polycarbonate needs for its downstream products from external suppliers, resulting in an expected annual profitability improvement of $15 million to $20 million.
“These measures are the result of a thoughtful analysis of our portfolio and industry trends, combined with an understanding of the global competitive environment,” stated Frank Bozich, Trinseo President and CEO. “We believe they will result in a more streamlined organizational structure that will fuel our ability to continue to grow strategically, while improving service to our customers and reducing costs.”
The restructuring will incur pre-tax charges between $23 million and $28 million, primarily from severance and related benefits ranging from $22 million to $26 million, alongside $1 million to $2 million in asset-related and contract termination costs, largely linked to the Stade site.
Bozich expressed the difficulty of these decisions, noting, “None of these actions are taken lightly, especially those directly impacting our colleagues. These are extremely difficult decisions that are in many ways driven by macroeconomic factors that are simply beyond our control. The contributions of our talented employees are greatly valued, and we are committed to doing everything we can to help them transition during this challenging time.” He further acknowledged the resilience and dedication of Trinseo employees globally as the company navigates these changes.
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