INEOS Styrolution announced the permanent closure of its polystyrene production plant (PS) located in Channahon, Illinois, a decision that is part of the company’s asset optimization strategy in North America. The dismantling process and orderly shutdown will be completed during the fourth quarter of 2026.
The facility currently employs around 100 workers and has been part of the company’s operations for decades. The company reported that it will support affected employees through assistance programs during the transition period.
Market pressure drives the decision
As explained by Steve Harrington, CEO of INEOS Styrolution, the measure responds to the challenging conditions facing the North American polystyrene market.
The company noted that the combination of industry oversupply, low utilization rates, and an increasingly demanding cost structure has reduced the economic viability of keeping the Channahon plant in operation.
After evaluating different business scenarios and the long-term outlook for the market, the company concluded that continuing operations at the Illinois facility is no longer financially sustainable.
Production consolidated at two plants
As part of this industrial reorganization, INEOS Styrolution will reduce its polystyrene production sites in North America from three to two.
Operations will continue at the Decatur, Alabama, and Altamira, Mexico, plants, facilities that will take over the regional supply of polystyrene materials for sectors such as healthcare, packaging, home appliances, and construction.
The company believes this structure will enable a more efficient, reliable, and competitive production network under current market conditions.
INEOS maintains its commitment to polystyrene
Despite the closure, the company reiterated its commitment to the polystyrene business and to developing solutions focused on sustainability.
Greg Fordyce, President of INEOS Styrolution Americas, emphasized that polystyrene remains a relevant material due to its versatility, performance, and potential to be integrated into circular economy models.
Likewise, the company will continue to promote initiatives related to polystyrene recyclability and the development of new applications for its styrenic materials.
The Illinois polystyrene plant has been operating since 1960
The Channahon plant is located approximately 72 kilometers southwest of Chicago and has been operating since 1960. The facility has a production capacity of close to 400,000 metric tons per year.
Although polystyrene production will cease, the Regional Development Center for the Americas will remain on site. From this facility, innovation, applied research, and the opening of new markets for the company’s various styrenic product lines will continue to be driven.
Throughout the entire closure process, INEOS Styrolution indicated that the safety of employees, contractors, and local communities will continue to be an operational priority.
Source and photo: INEOS Styrolution
