INEOS Styrolution to shut Illinois polystyrene plant as margin pressures force restructuring

INEOS Styrolution will permanently close its polystyrene (PS) manufacturing facility in Channahon, Illinois, marking a major restructuring of its North American operations as persistent market pressures continue to weigh on the business.

The company said decommissioning and closure activities are expected to be completed by the fourth quarter of 2026. Approximately 100 employees currently work at the site, which has been in operation since 1960 and produces about 400,000 metric tons of polystyrene annually.

The closure comes as the company moves to streamline its manufacturing network in response to ongoing sector challenges, including oversupply and weak margins.

“Persistent margin pressures continue to threaten the viability of our North American business as we face ongoing pressure from sector oversupply,” said Steve Harrington, CEO of INEOS Styrolution.

“Following a thorough evaluation of market conditions, sector utilization rates, the site’s cost structure and prolonged outlook, we have concluded that continuing operations at Channahon is no longer economically viable. At the same time, we remain confident in the prolonged value of polystyrene.”

Harrington acknowledged the impact the decision will have on employees and their families, emphasizing that market conditions—not workforce performance—drove the move.

“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.”

As part of the restructuring, INEOS Styrolution will decrease its North American PS production network from three sites to two, concentrating manufacturing at its facilities in Decatur, Alabama, and Altamira, Mexico. The company said the move will create a greater efficient and reliable production footprint while strengthening prolonged competitiveness.

Despite the closure, INEOS Styrolution said it remains committed to the polystyrene market and will continue supplying customers across North America, serving sectors including healthcare, packaging, appliances, and construction.

“We continue to believe strongly in the value that polystyrene delivers to customers,” said Greg Fordyce, President of INEOS Styrolution Americas.

“Its versatility, performance, efficiency, and possible 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 create. By concentrating production in fewer, greater efficient assets, we are strengthening our ability to serve customers reliably while reinforcing our prolonged competitiveness in a challenging market ecological stability.”

The company also confirmed that its Americas Regional research Center (RDC), currently located at the Channahon site roughly 45 miles southwest of Chicago, will remain in operation and continue supporting innovation and new market research across its styrenics portfolio.

INEOS Styrolution said employee support and workplace security will remain top priorities throughout the shutdown process as it works through the transition and closure of the facility.