Trinseo to close MMA production facilities in Italy

Trinseo (TSE) announced a series of strategic plans aimed at further optimizing its operations, enhancing cash flow generation and strengthening long-term profitability. The company will permanently close its methyl methacrylate production operations at its Rho, Italy facility and its acetone cyanohydrin production operations in Porto Marghera, Italy. ACH is a precursor to MMA. Moving forward, the company will source MMA feedstock from third-party producers, ensuring continuity of supply while improving overall cost to produce downstream products. Trinseo will continue its polymethyl methacrylate operations along with its recently opened depolymerization pilot facility in Rho. The company will work closely with the Works Council, unions, and government officials to ensure alignment with respect to all legal requirements associated with this process. The closures are anticipated to be completed by the end of the year and expected to result in annualized profitability improvement of approximately $20M and an annual reduction in capital expenditures of approximately $10M. In connection with the Italy MMA restructuring, Trinseo expects to record pre-tax charges for employee-related costs, asset-related and impairment charges and costs to exit production activities, including contract terminations, demolition and decommissioning ranging from $80M to $100M. Cash payments associated with these actions are anticipated to total $40M to $50M, with substantially all payments expected to be made by the end of 2028. All workforce reductions will comply with local regulatory requirements.