Joint News Release
Trinseo and BASF jointly announce Business Collaboration on Circular Feedstock
- Partnership based on shared values supporting circularity with styrenic plastics
- Biomass-balanced feedstock: Distinct greenhouse gas reduction with product properties unchanged
- Chemically recycled feedstock: Plastic waste redirected into production cycles
Berwyn, Pa, USA, Ludwigshafen, Germany, March 29, 2021 – Trinseo (NYSE: TSE) and BASF announce today the intention to expand their businesses with the production of styrene based on circular feedstock. The enhanced collaboration between Trinseo and BASF aims to increase efforts by both companies in the development and management of styrene featuring an improved environmental profile.
Trinseo has recently been procuring first supplies of the synthetical chemical styrene based on circular feedstock from BASF for use in its Solution-Styrene Butadiene Rubber (S-SBR) and polystyrene (PS) products. Trinseo supplies S-SBR to major tires manufacturers while its PS products are used in applications such as food packaging and appliances. The first few customers have already processed the material.
“By creating synergy across the value chain, the Trinseo-BASF collaboration is an important move towards helping our customers reach their sustainability goals as well as the development of a truly circular economy,” said Nicolas Joly, Vice President, Plastics & Feedstocks of Trinseo. “The initiative is also in line with Trinseo’s 2030 Sustainability Goals announced earlier this year.”
“CO2 emission reduction and a circular economy are BASF’s paramount targets. Using circular feedstocks instead of virgin fossil resources contributes directly or indirectly to an improved CO2 footprint of subsequent products,” says Klaus Ries, Vice President for BASF’s Styrenics Business Europe. “While our customer Trinseo procures biomass balanced (BMB) styrene for their downstream business already, styrene Ccycled™ will be available in the near future”.
Two types of mass balanced styrene
There are two types of styrene BASF can produce with a mass balance approach – renewable feedstock based-styrene and styrene based on chemically recycled feedstock. Mass balance is a chain of custody model designed to keep track of the total amount of input (e. g. circular feedstock) throughout the production cycle and ensure an appropriate allocation to the finished goods. Both of these alternative feedstocks replace a certain amount of virgin fossil resources at the beginning of the value chain - leading to a reduction of CO2 emissions.
To produce BMB styrene, BASF replaces fossil resources like naphtha or natural gas by renewable feedstocks derived from organic waste or vegetable oils. When manufacturing Ccycled™ products, BASF uses pyrolysis oil derived from plastic waste that is not recycled mechanically, e.g., mixed household waste or end-of-life tires, as a feedstock, thus contributing to plastics circularity.
With this approach Trinseo and BASF can offer products with a better environmental profile and the same properties as those manufactured from fossil feedstock. The allocation process via the mass balance approach as well as the products are certified by an independent auditor. Read more about BASF’s ChemCycling™ project here.
About BASF
At BASF, we create chemistry for a sustainable future. We combine economic success with environmental protection and social responsibility. More than 110,000 employees in the BASF Group contribute to the success of our customers in nearly all sectors and almost every country in the world. Our portfolio is organized into six segments: Chemicals, Materials, Industrial Solutions, Surface Technologies, Nutrition & Care and Agricultural Solutions. BASF generated sales of €59 billion in 2020. BASF shares are traded on the stock exchange in Frankfurt (BAS) and as American Depositary Receipts (BASFY) in the U.S. Further information at www.basf.com.
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.
BASF media contact: Trinseo media contact:
Sabine Philipp Peggy Sung
Phone: +49 621 60 43348 Phone: +852 31206314
sabine.philipp@basf.com peggysung@trinseo.com
Note on Forward-Looking Statements
This press release may contain “forward-looking statements” including, without limitation, statements concerning plans, objectives, goals, projections, expectations, strategies, future events or performance, and underlying assumptions and other statements, which are not statements of historical facts or guarantees of future performance. Forward-looking statements may be identified by the use of words like “expect,” “estimate,” “will,” “may,” 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 the availability and use of circular feedstocks, the Company’s business, the economy and other future conditions. Specific factors that could cause future results to differ from those expressed by the forward-looking statements include, but are not limited to, those discussed in the Company’s 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 Securities and Exchange Commission from time to time. As a result of these or other factors, the Company’s actual results may differ materially from those contemplated by the forward-looking statements. The forward-looking statements included in this press release are made only as of the date hereof and are not a guarantee of future performance. 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.
P-21-170
