Pittsburgh-based Koppers Inc. announced it will cease its phthalic anhydride production at its facility in Stickney, Ill.
The company, a wholly-owned subsidiary of Koppers Holdings Inc., said it would discontinue production in mid-2025 as a way to optimize its business portfolio and enhance its cash flow. The decision will impact an estimated 25 employees, the company said, but the capital spending requirements for the facility could not be economically justified.
“The decision to close the phthalic anhydride plant demonstrates our ongoing willingness to critically assess our portfolio and pivot from underperforming businesses when it is clear that improvement is not on the horizon,” Koppers CEO Leroy Ball said. “By focusing on our core strengths, we can continue to enhance our competitive position in healthier markets to drive better long-term returns. Ceasing operations at any plant is never easy, however, this will improve the performance, efficiency, and emissions profile at Stickney.”
Officials said the company expects to ramp down production over the next six months as the company builds inventory to supply existing contract through to the end of the year, as necessary. The plant’s closure will not impact its coal tar distillation operations, which manufacture products including creosote, carbon pitch and pavement sealer base.
One benefit of the facility’s closure, officials said, will be an improvement in the site’s environmental footprint. Certain regulated air contaminants are expected to drop by between 50 and 70 percent, officials said.