Styrolution will shut its 80,000 tpa polystyrene plant in Trelleborg, Sweden, by the end of 2014, citing overcapacity in the European market. As per Argusmedia.com, the styrenics supplier will continue to produce polystyrene at its plants in Antwerp, Belgium and Wingles, France.
"The polystyrene market in Europe has been characterized by decreasing demand, overcapacity and underutilization," said Kevin McQuade, president of Styrolution's operations in Europe, the Middle East and Africa. "Styrolution remains fully committed to its polystyrene business, and we are confident this measure will further strengthen our leading position in this important product segment in the region." Since this year's peak in February, European crystal-grade polystyrene prices have fallen by 10.4 % and high-impact polystyrene prices have fallen by 12.1% due to lower costs for benzene feedstock.
The Trelleborg closure follows an announcement in February in which Styrolution announced plans to shutter its 150,000 tpa polystyrene plant in Indian Orchard, Massachusetts by the end of 2014. Declining demand for polystyrene is the result of lower production of end-use products, including home electronics and consumer packaging. Instead, the company aims to focus on styrenic specialties as well as emerging markets and higher-growth industries.