Cornerstone Chemical Company, a prominent provider of melamine, acrylonitrile (AN), and sulfuric acid, has announced its decision to cease operations of its Acrylonitrile business by June 30, 2025. This strategic move comes after evaluating prevailing market conditions and a comprehensive review of the company’s long-term objectives.

The decision deemed necessary to safeguard the future of Cornerstone’s Energy Park, ensure the sustainability of its remaining business segments, and protect the interests of its employees and stakeholders. Headquartered in Waggaman, Louisiana, Cornerstone Chemical Company employs approximately 400 people and is a key contributor to the local economy.

“Making the decision to close our AN Business was incredibly difficult,” stated Matthew Sokol, President and CEO of Cornerstone. “We are immensely proud of our dedicated workforce and the strong relationships we’ve built with our customers, partners, and suppliers. Unfortunately, the changing dynamics in the industry have made it impossible to continue operations as we have in the past.”

Cornerstone has been a long-standing player in the AN market, establishing a reputation for high-quality production and manufacturing excellence. However, the company has faced significant financial headwinds, primarily due to an oversupplied global AN market and escalating raw material costs. These challenges have made it increasingly difficult for the AN business to remain competitive and profitable.

The company's announcement highlights the volatile nature of the chemical industry, where global supply and demand dynamics can rapidly shift, impacting profitability. The oversupply of AN, driven by increased production capacity in various regions, has created a challenging pricing environment. Simultaneously, fluctuating raw material costs have further squeezed margins, making it unsustainable for Cornerstone to continue its AN operations.

Cornerstone’s focus will now shift towards optimizing its remaining businesses, including Melamine and Sulfuric Acid production, and exploring new opportunities within its Energy Park. The company is committed to ensuring a smooth transition, adhering to all legal and regulatory requirements, including the safe idling of its AN facilities.

A critical aspect of Cornerstone’s plan involves supporting its employees during this period of change. The company has pledged to work diligently to reallocate and reassign its workforce wherever possible, providing resources and assistance to those affected by the closure.

The company will also prioritize maintaining strong relationships with its customers and suppliers, ensuring minimal disruption during the transition. Cornerstone's established reputation for quality and reliability will be crucial in managing these relationships.

The company's commitment to the Greater New Orleans and Louisiana communities remains strong, even as it navigates these strategic changes.