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POTTER TWP. – The owners of a major Beaver County chemical plant plan to cease production at the facility by year-end.
Located at the confluence of Raccoon Creek and the Ohio River along Frankfort Road, Styropek produces expandable polystyrene, or foam, used in packaging and other Styrofoam-like products.
Alpek’s Mexico-based subsidiary Styropek bought the former Nova Chemicals site four years ago.
The company announced plans on Wednesday to cease production at its Potter Township plant by the end of 2024.
“This is a preliminary announcement subject to further discussions,” Styropek management said on Wednesday. “As part of this plan, Styropek will discontinue production of the CUP and ARCEL product lines, which are manufactured exclusively at the Beaver Valley plant.”
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Much of the production would be moved to facilities that are “better positioned to meet future business needs,” including in Painesville, Ohio, Styropek said.
If the company proceeds with the shutdown, the majority of the plant’s approximately 150 employees would likely be affected, although some customer-facing positions may remain filled.
Styropek plans to offer severance packages and will explore the possibility of outplacement support services for employees.
The company will provide employees with further information within 30-60 days.
The decision was made as part of a strategic review “aimed at enabling Styropek to prioritize and focus on long-term business goals and sustainability initiatives,” said Styropek management. This includes increasing recycling capacity and focusing on energy-efficient thermal insulation products.
“When we purchased the Beaver Valley plant in October 2020, Styropek was aware that it was acquiring an outdated facility,” said Andreas Plettner, CEO of Styropek. “Although we have made progress in improving the plant’s operability during our approximately four years of operation, the industry has evolved and the economics of the current market, coupled with our long-term goals and sustainability initiatives, make further investment increasingly difficult.”
The company is not currently considering selling the plant.
Late last year, environmental groups PennEnvironment and Three Rivers Waterkeeper filed a federal lawsuit against Styropek in the Western District of Pennsylvania for alleged violations of the Clean Water Act. The groups found evidence that the plant had been lacing wastewater and stormwater with plastic pellets for at least a year.
Styropek said the tentative decision was due to long-term business goals and current market conditions rather than the pending litigation. The company said it will continue to work with environmental groups and the Pennsylvania Department of Environmental Protection to ensure the environmental safety of the plant during operations.
