Trinseo PLC ( TSE ) announced new restructuring actions on Monday aimed at improving profitability and cash flow as the specialty materials company faces prolonged challenges in Europe’s chemical sector.

The company will permanently shut down its methyl methacrylate (MMA) operations in Rho, Italy, and its acetone cyanohydrin (ACH) production in Porto Marghera, Italy.

The move will allow Trinseo ( TSE ) to source MMA feedstock from third parties, ensuring supply continuity while cutting costs. The closures are expected to increase annual profitability by approximately $20 million and reduce capital expenditures by $10 million annually.

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Trinseo ( TSE ) stated that it will incur pre-tax charges of $80 million to $100 million, primarily related to employee costs, asset write-downs, and site decommissioning.

Cash payments related to these actions are projected to be between $40 million and $50 million through 2028. The company will maintain its polymethyl methacrylate (PMMA) operations and depolymerization pilot facility in Rho.

The company has initiated discussions with the Works Council of Trinseo Deutschland GmbH regarding the potential closure of its polystyrene production facility in Schkopau, Germany, and the consolidation of output in Tessenderlo, Belgium. If approved, the move could add about $10 million in annual profitability.

CEO Frank Bozich said the decisions reflect persistent industry headwinds, including weak demand, high energy costs, and increasing imports from Asia.

Dividend Suspension and Outlook

Trinseo’s board has indefinitely suspended its quarterly dividend of 1 cent per share, a step expected to save approximately $1.5 million annually.

The company stated that it remains committed to investing in sustainable solutions and supporting its global customer base, while continuing to streamline its operations.

Earlier, Trinseo ( TSE ) reported its second-quarter results and 2025 outlook, emphasizing cost discipline and long-term growth initiatives.

Price Action: TSE shares were trading 10.02% lower at $2.101 premarket at last check Monday.

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