Dive Brief:
- Ineos Styrolution announced on Friday it will permanently close its polystyrene production site in Channahon, Illinois, during the fourth quarter. The site, located southwest of Chicago, employs approximately 100 people.
- Margins are under pressure in North America from “industry oversupply,” CEO Steve Harrington said in a statement. “Following a thorough evaluation of market conditions, industry utilization rates, the site’s cost structure and long-term outlook, we have concluded that continuing operations at Channahon is no longer economically viable.”
- The site had production capacity of approximately 400,000 metric tons. The company said it will continue to serve the North American PS market via production facilities in Decatur, Alabama, and Altamira, Mexico.
Dive Insight:
Ineos Styrolution provides material to the packaging industry, as well as to automotive, healthcare and electronics customers. It’s a subsidiary under broader chemicals company Ineos Group.
Ineos Styrolution says it remains bullish on opportunities in PS, though plastics in this realm have faced external pressures.
Recycling challenges have pushed some states, such as California, to restrict expanded polystyrene foam containers. Foodservice packaging manufacturer Genpak planned to close a Utah manufacturing facility this year that made polystyrene containers, citing certain bans in neighboring states. Illinois lawmakers have advanced similar legislation.
PS stakeholders are trying to push back. The Polystyrene Recycling Alliance recently called on the U.S. Plastics Pact to remove expanded polystyrene transport packaging and rigid polystyrene packaging from its Problematic and Unnecessary Materials list.
The Channahon site has been operational since 1960, Ineos Styrolution said in its announcement.
“INEOS Styrolution recognizes the significant impact this decision will have on employees and their families and is committed to supporting affected employees throughout the transition,” the company said in a press release.
The site also houses the company’s Americas Regional Development Center, which is used to “support innovation and new market development” across styrenic product lines. The center will continue to operate despite the PS production shutdown. Ineos Styrolution had also sought to expand in Channahon, collaborating on a proposed chemical recycling facility with Agilyx.
