05:54 PM EDT, 09/30/2024 (MT Newswires) -- Trinseo ( TSE ) unveiled late Monday restructuring initiatives that will "better position the business for longer-term growth, improved profitability, and increased cash generation" but involve job cuts and an exit from a production facility in Germany.

The company anticipates annualized run rate cost savings of $30 million from its decision to combine the management of its engineered materials, plastics solutions, and polystyrene businesses. It expects the restructuring, resulting in a workforce reduction, to be substantially complete by the end of 2025.

The company has also decided to exit virgin polycarbonate production at its Stade, Germany production facility and plans to use external suppliers for almost all of its polycarbonate needs. The switch will likely result in an annualized run rate profitability improvement of $15 million to $20 million relative to manufacturing at Stade.

The company expects to record total pre-tax restructuring charges of $23 million to $28 million.

Shares of the company rose 2.1% in after-hours activity.

Price: 5.22, Change: +0.11, Percent Change: +2.08