Germany-headquartered Styrolution plans to consolidate PS capacity in the US by mothballing its Massachusetts plant and it will also accelerate growth in styrenic specialities through an expansion of its offering for high-performance transparent styrenics, by providing local supply in Europe, the Middle East and Africa (EMEA).

In the US, the decision to mothball the plant comes following years of overcapacity in the North American polystyrene market, which has also impacted Styrolution making it necessary for the company to take action to secure this business for the future. The plant accounts for 150,000 tonnes of PS production capacity. The mothballing would affect 58 employees currently working at the site.

It says that PS remains a core business for the company and that the much improved cost structures resulting from this measure will help strengthen its position long-term. The company will continue to serve the North American PS market from its plants in Decatur and Channahon, US, and Altamira, Mexico.

Meanwhile, by the end of third quarter of 2014, Styrolution will commence production of high-performance transparent speciality, NAS styrene methyl methacrylate copolymers (SMMA) at the company’s plant in Ludwigshafen, Germany. These grades are used in a variety of applications demanding a strong, stiff, water-clear plastic resin with excellent thermal stability. Main benefits include: clarity, low density, high flowability and alcohol resistance. NAS products fulfill US Pharmacopeia requirements (USP Class VI), ISO 10993 biocompatibility testing, and comply with U.S. FDA and EU food contact regulations. They are used in applications ranging from medical devices and housewares, to packaging and electronic devices.

Currently, NAS is supplied to the EMEA region from Indian Orchard and compounded locally into the transparent product Zylar methyl methacrylate butadiene styrene copolymers (MBS). It is a range of impact modified styrene acrylic copolymers that provide medium to high toughness, good clarity and easier processing for demanding injection moUlded applications. The primary benefits are a high optical quality, excellent impact strength, good resistance to alcohol, washing and cleaning agents, as well as an outstanding flowability. Zylar products fulfill US Pharmacopeia requirements (USP Class VI), ISO 10993 biocompatibility testing, and comply with US FDA and EU food contact regulations. They are used in applications ranging from medical devices and housewares, to housings and cosmetics packaging.

Styrolution is committed to providing customers additional supply options for both speciality and standard products from at least two sites. Offering local supply of NAS and Zylar in EMEA and the Americas is one of several expanded supply options announced over the past 18 months. These options include availability of Luran S grades from Styrolution’s Ulsan, South Korea, Altamira, Mexico and Ludwigshafen sites; AMSAN-based, high-heat (HH) products, such as Luran HH and Novodur® HH grades from the company’s sites in Altamira and Ludwigshafen; and a proposed joint venture with Braskem to produce ABS and SAN specialties in Brazil.

The above strategies are in line with Styrolution’s Triple Shift growth strategy, which calls for a focus on styrenic specialities and Standard ABS, emerging markets and higher-growth industries.