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United States-based Cornerstone Chemical Company has announced plans to mothball its acrylonitrile (ACN) and sulphuric acid manufacturing plant in Waggaman, Louisiana, effective June 30, citing financial and economic challenges. The decision aims to secure the long-term success of its world-class Energy Park and ensure the viability of its remaining businesses.
In a statement, the company said, “After careful consideration of market conditions and ongoing strategic reviews, we have concluded that mothballing the ACN operation in Waggaman is necessary to ensure the long-term success of our world-class Energy Park, the viability of our remaining businesses, and the well-being of our employees and stakeholders.” Cornerstone Chemical Company operates the Cornerstone Energy Park and is a leading provider of melamine, acrylonitrile, and sulfuric acid in Louisiana.
The company has been a prominent player in the acrylonitrile market for several decades, earning a reputation for quality and manufacturing excellence. However, “despite significant efforts to adapt to an evolving marketplace, the ACN business’s financial challenges—exacerbated by oversupplied global markets and rising raw material costs—have led to the difficult but necessary decision to exit the business at this time,” the statement added.
Decision making
Matthew Sokol, Cornerstone’s President and Chief Executive Officer, stated, “The decision to close our ACN business was incredibly difficult. We are immensely proud of our dedicated workforce and the strong relationships we’ve built with our customers, partners, and suppliers. Unfortunately, the changing dynamics of the industry have made it impossible to continue operations as we have in the past. As we evaluate opportunities at the Energy Park for 2025 and beyond, we will work diligently to reallocate and reassign our current workforce wherever possible.”
As part of this transition, the company is committed to meeting all legal and regulatory obligations, including the safe idling of its facilities, protecting its employees, and managing customer and supplier relationships. Additionally, the company will work closely with its team to provide support and resources during this challenging period.
Production and capacity
Headquartered in Waggaman, Louisiana, with approximately 400 employees, Cornerstone Chemical Company is a leading manufacturer of high-quality intermediate chemicals, including acrylonitrile (ACN), melamine, sulphuric acid, urea, and other products used in a variety of end-market applications. The plant operates with a capacity of 240,000 tonnes per annum, accounting for approximately 15% of the total ACN production capacity in the United States.
Notably, Unigel ceased ACN production in Brazil in 2024. Additionally, Roehm plans to end methyl methacrylate (MMA) production at its Fortier, Louisiana, facility by June. Cornerstone operates in the same region where Roehm’s production facility is located. Meanwhile, Roehm’s greenfield project in Bay City, Texas, is expected to commence commercial production by the end of March without utilizing hydrogen cyanide, a by-product of ACN manufacturing.
Analysts predict a significant decline in ACN demand in the United States this year due to the closure of downstream units. U.S. ACN export demand has also weakened, with overall shipments declining by 40% in 2024 compared to 2023.
For instance, INEOS Styrolution has announced plans to shut down its acrylonitrile butadiene styrene (ABS) production site in Addyston, Ohio. The plant has a production capacity of approximately 200,000 tonnes per annum, and its closure is set to begin in the April-June 2025 quarter. Similarly, U.S.-based nylon producer Ascend Performance Materials has decided to close the remaining operations of its Greenwood, South Carolina, facility, which has a production capacity of approximately 140,000 tonnes per annum.
Main focus area
The Cornerstone Energy Park spans 800 acres in Waggaman, Louisiana, just outside New Orleans, and represents a significant economic and civic investment in the local community and the state of Louisiana. This facility produces high-quality products that are shipped worldwide, including acrylonitrile, melamine, sulphuric acid, and urea. These products are essential for goods that enhance safety, protect the environment, and improve the durability and longevity of many everyday items.
The company prioritizes safety, environmental protection, and employee health in its operations. It regularly audits plant areas, conducts environmental protection programs, and performs employee wellness assessments, showcasing its commitment to operational excellence and safety throughout its production facilities.
DILIP KUMAR JHA
Editor
dilip.jha@polymerupdate.com
