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Trinseo to Begin MAGNUM™ ABS Production in China in 2017

Driving Growth in Trinseo’s Basic Plastics and Performance Plastics Businesses

BERWYN, Pa. - Friday, October 14, 2016

Trinseo (NYSE: TSE), a global materials solutions provider and manufacturer of plastics, latex binders and synthetic rubber, today announced that Trinseo will begin production of MAGNUM™ ABS Resin at its Zhangjiagang, China site in 2017. 

The investment project, which began in 2015, is based on Trinseo’s proprietary process technology, which yields ABS of superior quality compared to competitive ABS resins produced in China today.  MAGNUM™ ABS delivers greater product stability -- which can reduce costs for molding, compounding, extrusion, and thermoforming -- while offering superior aesthetics in the final product.  

MAGNUM™ ABS is an ideal fit for automotive, buses/utility vehicles, appliances, electronics, consumer goods, furniture and sanitary applications, and building and construction applications where aesthetics are important.

“For end-use applications where looks matter, MAGNUM™ ABS will be an advantaged choice for customers in Asia who need to meet demanding customer aesthetics while keeping fabrication costs down,” said Francesca Reverberi, Business Director, Basic Plastics. “With MAGNUM™ ABS, customers in China and across Asia will be able to achieve production efficiencies and cost savings through greater product stability and color stability. This means peace of mind that customers will be able to deliver consistent color and finish, and superior end aesthetics every time.” 

Trinseo MAGNUM ABS Production

Trinseo’s MAGNUM™ ABS Resins (left side of photo) as compared to competitors’ emulsion ABS resins manufactured in China.

Trinseo’s continuous polymerization technology yields ABS of superior quality compared to competitive ABS resins produced in the region today.

“Production of Trinseo’s MAGNUM™ ABS in Zhangjiagang reinforces the long-term commitment of Trinseo’s automotive business to have local production of its global products in all major regions, further supporting our global partnerships with major OEMs,” said Dagmar van Heur, Vice President, Performance Plastics.

MAGNUM™ ABS offers a number of properties valued by molders and compounders in China and across Asia, including:

  • A purer white base color, with better color retention and stability over time
  • A more thermally stable product, with fewer black specks
  • A purer, lower gel product with less VOCs and residual impurities, and consequently lower odor, supporting better air quality in interior automotive applications
  • High impact resistance and durability over time
  • Superior surface aesthetics

Together, these properties will enable molders and compounders to consistently deliver a high quality part at a lower cost, due to:

  • Less pigment needed to achieve the right result
  • Less employee time needed to adjust the machines
  • Less machine downtime
  • Less wastage between batches

Learn more about MAGNUM™ ABS at http://www.trinseo.com/Products/Plastics/Products/MAGNUM-ABS.

About Trinseo

Trinseo (NYSE:TSE) is a global materials solutions provider and manufacturer of plastics, latex binders, and synthetic rubber with a focus on delivering innovative, sustainable, and value-creating products that are intrinsic to our daily lives. Trinseo is dedicated to making a positive impact on society by partnering with like-minded stakeholders, and supporting the sustainability goals of our customers in a wide range of end-markets including automotive, consumer electronics, appliances, medical devices, packaging, footwear, carpet, paper and board, building and construction, and tires. Trinseo had approximately $3.0 billion in net sales in 2020, with 17 manufacturing sites around the world, and approximately 2,600 employees. For more information, please visit: www.trinseo.com.

Cautionary Note on Forward-Looking Statements

This press release may contain forward-looking statements including, without limitation, statements concerning plans, objectives, goals, projections, 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," "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 our current expectations and assumptions regarding the timing of the proposed acquisition of the Arkema MMA and PMMA business (the "Acquisition"); estimated and future results of operations, business strategies, competitive position, industry environment and potential growth opportunities and cost synergies relating to the Acquisition, our business, the economy 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 such a difference include, but are not limited to, our failure to complete the Acquisition or meet the conditions to closing, including antitrust, works council and other regulatory approvals; the failure to obtain the financing necessary to fund the Acquisition and the impact of the substantial indebtedness to be incurred; costs related to the Acquisition; following the Acquisition, our ability to successfully integrate the acquired businesses, generate expected cost savings and synergies, maintain relationships with customers, retain key employees and profitably grow the business; and those factors 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, our actual results 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 press release are made only as of the date hereof. We undertake 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.

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