INEOS Styrolution is permanently closing its polystyrene (PS) production site in Channahon, Illinois. The process is expected to be completed in the fourth quarter of 2026. The site currently employs around 100 people and has been a longstanding part of the INEOS Styrolution business, the company is committed to supporting affected employees throughout the transition.
INEOS Styrolution
INEOS Styrolution closes Illinois polystyrene production site
“Persistent margin pressures continue to threaten the viability of our North American business as we face ongoing pressure from industry oversupply,” said Steve Harrington, CEO of INEOS Styrolution. “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 polystyrene. 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.”
The company will transition North American PS production from three sites to two, with operations continuing at Decatur, Alabama, and Altamira, Mexico. This will boost the efficiency and reliability of the production network. However, INEOS Styrolution remains fully committed to its Polystyrene business and will continue to serve its customers across North America.
“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 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 Channahon site has been in operation since 1960 and has a production capacity of around 400,000 metric tons. The Americas Regional Development Centre (RDC), which is located at the site, will remain.