The styrene molecule - styrene is an important precursor to polystyrene, an important synthetic material.

Petrochemical products maker Sterling Chemicals announced on 13 November that it will exit the styrene business to pursue other strategic initiatives. The company’s decision followed the clearance under the Hart-Scott-Rodino Act of a styrene supply agreement with NOVA Chemicals.

In connection with its exit from the styrene business, Houston-based Sterling said it plans to cut its workforce over the next nine months. The closure costs of the styrene facility are expected to be $10 million to $15 million, which include the payment of employee severance costs and decommissioning costs.

In an effort to mitigate disruptions, reduce costs and add value to its Texas City site, Sterling is actively engaged in third-party discussions regarding strategic initiatives that would require the services of a significant number of its dedicated styrenics employees.

In anticipation of this business closure, Sterling has been evaluating other projects to utilise its styrene-related facilities in alternative manufacturing processes.

Sterling believes that successfully reengineering and deploying these assets at their Texas City site will have substantially greater value than selling the styrene-related equipment for their base metal value.

Richard Crump, Sterling’s Chief Executive Officer, said: “Our deep water port facilities, rail access, other infrastructure assets coupled with Sterling’s talented operating team would complement the development of any chemical or oil and gas related activity at our Texas City facilities.

“These assets, our remaining operations, strong balance sheet and substantial cash position leave us in an excellent position to pursue our strategic growth initiatives either alone or in partnership with others.”

For more information: www.sterlingchemicals.com