Wedoany.com Report-Oct. 28, Kraton Corp., based in Houston, announced a strategic plan to streamline its polymers operations in Berre, France, by focusing solely on producing unhydrogenated styrenic block copolymers (USBC) and ceasing production of hydrogenated styrenic block copolymers (HSBC). The move is part of Kraton’s efforts to optimize its manufacturing footprint in response to global overcapacity in HSBC production.

On October 23, 2025, Kraton initiated an information and consultation period with the relevant Works Councils in Berre. A final decision on the plan will be made after the mandatory consultation period concludes.

Prakash Kolluri, President of Kraton Polymers, stated: “Our aim with this plan is to strengthen Kraton’s long-term competitive position by optimizing our manufacturing footprint in response to changing market dynamics associated with global overcapacity of HSBC production capability. With this step, we are preparing Kraton for a sustainable future by securing Kraton’s position as the leading global HSBC producer. Kraton is fully committed to supporting our customers through this transition with supply of HSBC products produced within our unmatched global manufacturing network.”

Kraton emphasized its commitment to employees during the transition, noting: “We recognize the impact of these actions, and are committed to a safe, respectful and supportive transition. The health, safety and well-being of the employees remain our top priorities.”

The Berre site adjustment is part of a broader global strategy. Kraton operates across multiple continents with a diverse portfolio of specialty polymers and biobased products derived from pine chemicals. The company will continue to leverage its global footprint to adapt quickly to market shifts, meet customer needs, and drive market-driven innovation.

By concentrating USBC production in Berre, Kraton aims to maintain operational efficiency while responding to evolving market demands. The company’s global network ensures that HSBC products will continue to be supplied reliably from other production sites, minimizing disruption to customers.

This strategic realignment reflects Kraton’s focus on long-term sustainability and competitiveness. By adjusting production lines and optimizing resources, the company plans to enhance flexibility, reduce exposure to overcapacity, and strengthen its position in the specialty polymers sector.

Overall, Kraton’s plan highlights a commitment to both market responsiveness and employee welfare, ensuring continued innovation and reliable product supply while navigating changing global market conditions. The company remains dedicated to maintaining leadership in HSBC production and supporting customers through its extensive global manufacturing network.