Wedoany.com Report-Oct. 31, Kraton Corporation has announced a strategic plan to restructure its polymers operations in Berre, France, by focusing exclusively on the production of unhydrogenated styrenic block copolymers (USBC) and discontinuing the manufacture of hydrogenated styrenic block copolymers (HSBC) at the site. The decision is part of the company’s broader effort to optimize its production footprint and enhance long-term competitiveness amid evolving global market conditions.

Kraton Corporation has recently announced a strategic plan to streamline its polymers operations in Berre, France and solely focus on producing USBC products in that location, ceasing production of HSBC products.

On October 23, 2025, Kraton began an information and consultation process with the relevant Works Councils in Berre regarding the proposed plan. The company stated that a final decision may be made following the completion of the mandatory consultation period.

Prakash Kolluri, President of Kraton Polymers, said: “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.”

He added: “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.”

Kraton emphasized that this move is designed to ensure its long-term operational sustainability by adapting to market realities, including rising competition and changing demand patterns in the specialty polymer industry. The company intends to concentrate production of USBC products in Berre, leveraging the site’s technical capabilities and expertise to strengthen supply reliability and operational efficiency.

With operations across multiple continents, Kraton remains a global leader in specialty polymers and high-value chemical solutions. The company highlighted that its diverse product portfolio and extensive manufacturing network will enable it to continue delivering market-driven innovations while maintaining flexibility to respond to customer and market needs.

The planned restructuring is part of Kraton’s ongoing commitment to operational excellence, sustainability, and responsible business practices. The company aims to continue investing in technologies and facilities that support long-term growth while minimizing environmental impact and ensuring high standards of safety and quality.

By focusing on USBC production in Berre, Kraton expects to enhance its strategic position in the polymers industry and better align its production with global demand trends. The company reaffirmed that its priority remains ensuring a smooth transition for employees and customers while sustaining reliable global supply and innovation leadership in specialty polymer manufacturing.