Packaging Dive reported the development on 2026-06-22. Operations are “no longer economically viable,” according to CEO Steve Harrington. About 100 people work at the Chicago-area site.
The report places the news in a wider commercial context. Ineos Styrolution announced on Friday it will permanently close its polystyrene production site in Channahon, Illinois, during the fourth quarter. According to a worker adjustment and retraining notification filed with the state, 94 employees will be affected. Margins are under pressure in North America from “industry oversupply,” CEO Steve Harrington said in a statement.
For the food sector, the practical implications extend beyond the immediate announcement. The site, located southwest of Chicago, had production capacity of approximately 400,000 metric tons. The company said it will continue to serve the North American PS market via production facilities in Decatur, Alabama, and Altamira, Mexico. Ineos Styrolution provides material to the packaging industry, as well as to automotive, healthcare and electronics customers.
Attention now turns to how companies, customers and regulators respond. Ineos Styrolution says it remains bullish on opportunities in PS, though plastics in this realm have faced external pressures. Recycling challenges have pushed some states, such as California, to restrict expanded polystyrene foam containers.
Packaging Dive
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