Trinseo, a manufacturer of plastics, latex, and rubber, has announced plans to close its styrene butadiene latex plant in Gales Ferry, Connecticut, due to continuing declines in the coated paper industry in North America, and as part of a program to reduce costs in the business.
“We are taking this action to reduce our cost structure in our North America business, in response to changing market demand for coated paper”
Customers will be sourced from Trinseo’s other latex plants in Midland, Michigan, and Dalton, Georgia. Trinseo will make capital investments at the Michigan plant to enhance production and storage capabilities in support of customers who previously were sourced from Connecticut.
“We are taking this action to reduce our cost structure in our North America business, in response to changing market demand for coated paper,” said Jan Muller, Global Business Director, Binders. “These changes will improve our cost position in North America and increase our asset utilization rates to approximately 85%.”
Production in Connecticut will cease at the end of 2015, followed by decommissioning and demolition in 2016. Seventeen employees at the latex plant will be eligible for separation packages.