Ineos Styrolution is to close its polystyrene (PS) production facility in Channahon, Illinois, as industry oversupply continues to suppress margins in the North American market.
The decommissioning process and site closure is expected to be completed during the fourth quarter of 2026.
The facility, located about 45 miles south-west of Chicago, employs around 100 people and has been operating since 1960. It has a production capacity of approximately 400,000 tonnes per year.
The company said the closure forms part of a wider strategy to optimise its manufacturing footprint in North America. Following the shutdown, PS production will be consolidated at its remaining facilities in Decatur, Alabama, and Altamira, Mexico.
‘Margin pressures’
Steve Harrington, chief executive of Ineos Styrolution, said: “Persistent margin pressures continue to threaten the viability of our North American business as we face ongoing pressure from industry oversupply.
“Following a thorough evaluation of market conditions, industry utilisation rates, the site’s cost structure and long-term outlook, we have concluded that continuing operations at Channahon is no longer economically viable. At the same time, we remain confident in the long-term value of PS.
“This is a difficult decision given its impact on our employees. Their commitment and professionalism have been outstanding throughout the years. This decision reflects broader market dynamics, not the dedication or performance of our Channahon team.”
Greg Fordyce, president of Ineos Styrolution Americas, added: “We continue to believe strongly in the value that PS delivers to customers.
“Its versatility, performance, efficiency, and potential to support circular solutions make it an essential material across a wide range of applications. These valuable materials require significant expertise, resources and ongoing support to produce. By concentrating production in fewer, more efficient assets, we are strengthening our ability to serve customers reliably while reinforcing our long-term competitiveness in a challenging market environment.”
The company said the move will reduce its North American production network from three sites to two. It added that production for customers across the region will continue from the remaining facilities.
Innovation activities
PS produced by the company is used in packaging, as well as healthcare, appliances and construction.
Despite the closure of manufacturing operations, the Americas Regional Development Center, which is currently based at the Channahon site, will remain in operation. The centre supports product development and innovation activities across the company’s styrenics portfolio.
Ineos Styrolution said it will provide support to employees affected by the closure during the transition process. It added that safety will remain a priority throughout the decommissioning and closure programme.
The company is a producer of styrene monomer, PS, acrylonitrile butadiene styrene, and other styrenics materials. The business operates 14 production sites across eight countries and employs around 2,500 people worldwide.
It is a wholly owned subsidiary of Ineos Group and reported sales of €3.9 billion ($4.47bn) in 2025.
