WAYNE, PA — Trinseo (NYSE: TSE) has announced a significant agreement to supply its polycarbonate technology license and production equipment from Stade, Germany, to Deepak Nitrite Limited’s subsidiary in India. This move marks a strategic shift for Trinseo as it exits virgin polycarbonate production while leveraging its advanced technology in emerging markets.
Frank Bozich, President and CEO of Trinseo, emphasized the value of the company’s technology, stating, “While Trinseo recently announced its decision to exit virgin polycarbonate production, our polycarbonate technology is highly valued and the manufacturing equipment in Stade, Germany, can be utilized in India by Deepak.” He further highlighted the potential for this partnership to pave the way for expansion into higher-growth regions such as India.
The agreements, valued at $52.5 million, mark the beginning of a collaborative effort between Trinseo and Deepak. Trinseo is set to receive approximately $9 million by the end of 2024, with an additional $21 million expected in the first half of 2025, contingent upon achieving key milestones.
This transaction not only facilitates the transition of valuable technology and assets to Deepak but also spotlights Trinseo’s strategic focus on enhancing its presence and capabilities in dynamic markets. The exit from the Stade site aligns with Trinseo’s broader strategy to optimize its portfolio and focus on sectors offering robust growth potential.
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