Trinseo PLC filed SEC Form 8-K: Costs Associated with Exit or Disposal Activities, Regulation FD Disclosure, Financial Statements and Exhibits
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ITEM 2.05Costs Associated with Exit or Disposal Activities.
On October 2, 2025, the management team of Trinseo PLC (the “Company”), upon authorization from the Company’s Board of Directors, approved a restructuring plan to permanently close its methyl methacrylate (MMA) production operations in Rho, Italy and its acetone cyanohydrin (ACH) production operations in Porto Marghera, Italy (the “MMA Restructuring Plan”). The MMA Restructuring Plan is intended to streamline the company’s MMA production network and exit underperforming assets. Moving forward, the company will source all MMA feedstock from third-party producers.
The Company expects to record total pre-tax restructuring charges of $80 million to $100 million, principally comprised of $3 million to $6 million of employee-related costs, $40 million to $46 million of asset-related charges and $37 million to $48 million related to exiting production activities, including contract terminations, demolition and decommissioning.
The anticipated future cash payments associated with these charges are expected to be approximately $40 million to $50 million with substantially all payments expected to be made by the end of 2028.
The Company expects the MMA Restructuring Plan actions to commence in the fourth quarter of 2025 and be completed by the end of 2026, subject to the satisfaction of local law requirements. However, the actual timing and costs of the MMA Restructuring Plan may differ from the Company’s current expectations and estimates and such differences may be material since these charges are subject to ongoing negotiations with works councils, industrial associations and government authorities.
The Company estimates that the MMA Restructuring Plan initiatives will deliver approximately $20 million of annualized profitability improvement beginning in 2026.
A copy of the Company’s press release announcing the MMA Restructuring Plan is filed as Exhibit 99.1 hereto and is incorporated herein by reference.
Cautionary Note on Forward-Looking Statements
This Current Report may contain forward-looking statements including, without limitation, statements concerning plans, objectives, goals, projections, forecasts, strategies, future events or performance, and underlying assumptions and other statements, which are not statements of historical facts or guarantees or assurances of future performance. Forward-looking statements may be identified by the use of words like “expect,” “anticipate,” “believe,” “intend,” “forecast,” “outlook,” “will,” “may,” “might,” “see,” “tend,” “assume,” “potential,” “likely,” “target,” “plan,” “contemplate,” “seek,” “attempt,” “should,” “could,” “would” or expressions of similar meaning. Forward-looking statements reflect management’s evaluation of information currently available and are based on the Company’s current expectations and assumptions regarding its business, the economy, its current indebtedness, and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. Factors that might cause future results to differ from those expressed by the forward-looking statements include, but are not limited to, our ability to successfully implement and complete proposed restructuring initiatives and to successfully generate cost savings through such initiatives; our ability to successfully negotiate an agreements with relevant works councils, unions or third parties; our ability to successfully execute our overall business and transformation strategy; increased costs or disruption in the supply of raw materials; deterioration of our credit profile limiting our access to commercial credit; compliance with laws and regulations impacting our business; conditions in the global economy and capital markets; our current and future levels of indebtedness and ability to service our debt; our ability to meet the covenants under our existing indebtedness; our ability to generate cash flows from operations; and those discussed in our Annual Report on Form 10-K, under Part I, Item 1A —”Risk Factors” and elsewhere in our other reports, filings and furnishings made with the U.S. Securities and Exchange Commission from time to time. As a result of these or other factors, the Company’s actual results, performance or achievements may differ materially from those contemplated by the forward-looking statements. Therefore, we caution you against relying on any of these forward-looking statements. The forward-looking statements included in this Current Report are made only as of the date hereof. The Company undertakes no obligation to publicly update or revise any forward-looking statement as a result of new information, future events or otherwise, except as otherwise required by law.
ITEM 7.01Regulation FD Disclosure.
In the press release dated October 6, 2025, the Company also announced that its Board of Directors had voted to indefinitely suspend the Company’s quarterly dividend, which information was reported on a previously filed Form 8-K. The press release is incorporated herein and attached hereto as Exhibit 99.1.
The information contained in Item 7.01 and Exhibit 99.1 of this Current Report shall not be deemed filed for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liability of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such a filing.
ITEM 9.01 | Exhibits. |
99.1 | |
104 | Cover Page Interactive Data File (formatted in Inline XBRL and contained in Exhibit 101) |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
TRINSEO PLC | ||
By: | /s/ David Stasse | |
Name: | David Stasse | |
Title: | Executive Vice President and Chief Financial Officer | |
Date: October 6, 2025 | ||