Trinseo to Sell Polycarbonate Technology License and Assets to Deepak Chem Tech Ltd

On November 13, 2024, Trinseo, a leading provider of specialty materials solutions, announced it has reached agreements to license its polycarbonate technology and transfer proprietary polycarbonate production equipment from its Stade, Germany facility to Deepak Nitrite Limited, a diversified chemical intermediates company based in Vadodara, Gujarat, India. This agreement follows Trinseo’s decision to exit the production of virgin polycarbonate, a move that is part of the company's broader strategy to focus on higher-growth opportunities and more sustainable areas of business.

Deepak, a multi-division company with a broad product range, will use the polycarbonate technology and equipment in its operations in India. Frank Bozich, President and CEO of Trinseo, commented on the deal, stating, “While we have made the strategic decision to exit virgin polycarbonate production, our polycarbonate technology remains highly valuable. The manufacturing equipment in Stade can be effectively utilized by Deepak to further expand their capabilities in India.” Bozich also noted that this agreement marks the first step in a new, strategic partnership with Deepak. The partnership will explore additional opportunities to expand Trinseo's technology portfolio in emerging markets, particularly in India, which is seen as a high-growth region.

The total value of the combined agreements amounts to $52.5 million. Trinseo expects to receive around $9 million by the end of 2024 and another $21 million in the first half of 2025, contingent on the achievement of key milestones. As part of the agreement, Trinseo will exit its Stade manufacturing site, marking the closure of its polycarbonate production operations there. This transaction is a key step in Trinseo's strategic reshaping of its portfolio, as it continues to focus on growth areas with strong potential, such as specialty materials, while divesting from mature and lower-growth segments like virgin polycarbonate production.

Trinseo, a leading provider of specialty material solutions, partners with companies to transform ideas into reality through creative, intelligent, and sustainable approaches. By leveraging its extensive expertise, forward-thinking innovations, and premium materials, Trinseo unlocks significant value for businesses and consumers alike.

With decades of experience in delivering diverse material solutions, Trinseo addresses the unique challenges faced by customers across a broad spectrum of industries, including building and construction, consumer goods, medical, and mobility. From the initial design phase to manufacturing, Trinseo supports its clients at every step, ensuring tailored solutions that meet the evolving demands of various sectors.

The company’s dedicated workforce, based in North America, Europe, and Asia Pacific, brings endless creativity to its partnerships, working collaboratively with clients worldwide to reimagine the possibilities of their products and projects. In 2023, Trinseo reported net sales of approximately $3.7 billion, further solidifying its position as a key player in the specialty materials industry.