INEOS Styrolution to permanently close polystyrene site in Illinois
Last update on Jun 24, 2026
Formulators and product developers sourcing polystyrene in North America should note a supply network change from INEOS Styrolution. The company has announced the permanent closure of its polystyrene (PS) production site in Channahon, Illinois, with decommissioning expected to be completed in the fourth quarter of 2026. North American PS supply will continue from two remaining sites: Decatur, Alabama, and Altamira, Mexico.
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Strategic closure driven by market evaluation and industry trends
The Channahon site, located approximately 45 miles southwest of Chicago, has been in operation since 1960 and holds a production capacity of approximately 400,000 metric tons. According to INEOS Styrolution, the decision to close follows a thorough evaluation of market conditions, industry utilization rates, the site's cost structure, and long-term outlook.
“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 utilization 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 closure affects approximately 100 employees. INEOS Styrolution states it is committed to supporting affected employees throughout the transition, and describes the decision as reflecting broader market dynamics rather than site-level performance.
You can review INEOS Styrolution's polystyrene grades in the Master Catalog of Plastics.
Consolidated PS production in NA
As part of its strategy to optimize its asset base, INEOS Styrolution will transition North American PS production from three sites to two. According to the company, concentrating production at Decatur, Alabama, and Altamira, Mexico, is intended to deliver a more efficient, focused, and reliable production network.
"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 company states it will continue to serve customers across North America with polystyrene for applications in healthcare, packaging, appliances, and construction, and will continue to support the sustainability and recyclability of PS products.
The Americas Regional Development Center (RDC), currently located at the Channahon site, will remain in place and continue to support innovation and new market development across INEOS Styrolution's styrenic product lines. Safety is identified by the company as its highest priority throughout the closure process, covering employees, contractors, and the local community.
You can review 1700+ polystyrene grades, compare performance parameters across applications and request samples directly in the Master Catalog of Plastics.