Permanent shutdown! ineos styrenics to close 400,000 tons/year ps plant in the us

Due to the ongoing overcapacity in the industry, INEOS Styrolution will permanently shut down its polystyrene production plant in Channahon, Illinois, in the fourth quarter of 2026. This shutdown will affect 100 employees.

Aerial view of the factory area: The regional R&D center at the Illinois base will continue to operate, providing innovative research and development support for the entire range of styrene products. Source: INEOS Styrolution.

INEOS Styrolution announced today that its polystyrene (PS) manufacturing plant in Channahon, Illinois, will be permanently shut down, with full dismantling and site clearance expected to be completed in the fourth quarter of 2026. About 100 employees at the site, which has been in operation for more than 60 years, will be affected by this change.

The core reasons for this decision are that the company has been continuously facing pressure from profit compression, the industry is suffering from severe overcapacity, and its North American operations have become unsustainable. The Channahon plant, located about 45 miles southwest of Chicago, has been in operation since 1960 and has an annual polystyrene production capacity of approximately 400,000 tonnes.

Steve Harrington, CEO of INEOS Styrolution, said: "Industry overcapacity has brought sustained shocks, profit margins have been steadily squeezed, and our North American operations are under pressure. After comprehensively assessing market conditions, industry operating rates, the plant's cost structure and long-term prospects, we concluded that the Channahon plant no longer has the economic viability to continue operating. However, we remain optimistic about the long-term value of polystyrene materials."

Strategic Capacity Integration

As part of its asset optimization strategy, INEOS Styrolution will consolidate its three polystyrene production sites in North America into two, retaining the Decatur plant in Alabama and the Altamira plant in Mexico for continued production. This consolidation will establish a more efficient, centrally located, and stable supply production network.

Despite shutting down the plant, the company continues to focus on the polystyrene business, consistently supplying high-quality raw materials for customers across North America in the medical, packaging, home appliance, and construction sectors, while also promoting the sustainable attributes and recyclability of polystyrene products.

R&D center remains in operation

The Americas Regional R&D Center (RDC), located at the Channahon site, will continue to operate normally, driving technological innovation and new market development for the full range of styrenic products, and ensuring the continued provision of technical services and new product development capabilities to customers across the Americas.

The company commits to providing support measures for affected employees during the personnel transition phase. Throughout the shutdown process, safety in production will be prioritized to ensure the safety of employees, contractors, and the local community.

France simultaneously shuts down factories

In November 2025, the company announced the permanent closure of its polystyrene plant in Wingles, France, as a strategic restructuring measure to adapt to market changes and enhance the overall competitiveness of its European operations.