Ineos Styrolution announced June 17 plans to permanently close its polystyrene production site in Channahon, Illinois, with decommissioning and site closure activities expected to be completed in the fourth quarter of 2026.

The site, which employs approximately 100 people and has operated since 1960, produces polystyrene materials for applications including healthcare, packaging, appliances and construction. According to the company, the decision follows continued margin pressure, industry oversupply, lower site utilization and challenges related to the site’s cost structure.

“Persistent margin pressures continue to threaten the viability of our North American business as we face ongoing pressure from industry oversupply,” said Steve Harrington, CEO of Ineos Styrolution, in a press statement. “Following a thorough evaluation of market conditions, industry utilization rates, the site’s cost structure and long-term outlook, we have concluded that continuing operations at Channahon is no longer economically viable.”

The closure will reduce Ineos Styrolution’s North American polystyrene production network from three sites to two. The company said production will continue at its facilities in Decatur, Alabama, and Altamira, Mexico, allowing it to operate a more focused manufacturing footprint.

According to the company, the Channahon site has an annual production capacity of approximately 400,000 metric tons. The Americas Regional Development Center located at the site will remain operational and continue supporting research, innovation and market development activities across Ineos Styrolution’s styrenic product portfolio.

“This is a difficult decision given its impact on our employees. Their commitment and professionalism have been outstanding throughout the years,” Harrington said. “This decision reflects broader market dynamics, not the dedication or performance of our Channahon team.”

Antwerp Phenol Restart Delayed

Meanwhile, in a separate announcement, Ineos Phenol said the planned restart of its phenol production facility in Antwerp, Belgium, will be delayed beyond the previously announced potential 2027 restart timeline.

According to Ineos, continued volatility in global supply and demand conditions has prevented the company from reaching the market conditions needed for an economic restart. The company cited challenges including reduced demand from the European automotive sector, increased imports of vehicles from China, high energy costs and carbon-related expenses affecting European petrochemical production.

Ineos said its phenol facility in Gladbeck, Germany, will continue production beyond 2027, while the Antwerp site will continue providing logistics services to local customers. The company said it will maintain investments needed to preserve the option of restarting the facility when market conditions improve.

Company Continues Low-Carbon Methanol Project Development

The announcements follow recent developments from other Ineos entities. Earlier this year, Ineos Acetyls announced a collaboration with Sandpiper Chemicals to develop a low-carbon methanol production facility at Ineos’ Texas City, Texas site.

According to the companies, the proposed approximately $1.7 billion project would use natural gas combined with carbon capture and storage technology designed to capture up to 97% of process carbon dioxide emissions. The facility is expected to supply methanol for acetic acid production, with Ineos serving as an anchor customer.

The project is expected to enter front-end engineering and design in 2026, with a final investment decision targeted for 2027 and production anticipated in 2030.