Kraton to focus Berre, France plant on USBC products, ending HSBC production, optimizing operations while prioritizing employee well-being.
Kraton Corporation, a prominent global producer of specialty polymers and high-value biobased products derived from pine chemicals, has unveiled a strategic initiative aimed at optimizing its production operations in Berre, France. Under this plan, Kraton intends to concentrate exclusively on the manufacturing of USBC products at its Berre facility, while discontinuing the production of HSBC products at the same site.
On October 23, 2025, the company initiated an information and consultation process with the relevant Works Councils in Berre. This mandatory consultation phase is designed to ensure a thorough review of the proposed operational changes and to engage employees and representatives in meaningful dialogue before any final decisions are made. Kraton has indicated that a definitive decision regarding the implementation of this plan is expected once the consultation period concludes.
Prakash Kolluri, President of Kraton Polymers, explained that the initiative is intended to strengthen the company’s long-term competitive position. “Our goal with this restructuring is to optimize Kraton’s manufacturing footprint in response to evolving market conditions, particularly the global overcapacity affecting HSBC production,” Kolluri said. “By focusing on USBC products in Berre, we are positioning Kraton for a sustainable future, ensuring that we maintain our role as a leading global supplier of HSBC products through our broader international manufacturing network.”
Kraton emphasized that, despite the operational changes, it remains fully committed to supporting its customers. The company will continue supplying HSBC products through other facilities in its global network, ensuring continuity of service and minimizing any potential disruption to customer operations.
The company also acknowledged the potential impact of these changes on employees. “We are fully aware of the implications for our workforce, and we are committed to ensuring a safe, respectful, and supportive transition for all affected team members,” Kolluri added. “The health, safety, and overall well-being of our employees remain the highest priorities during this period of adjustment.”
Kraton’s global operations span multiple continents and encompass a diverse portfolio of polymer solutions. The company’s approach emphasizes flexibility, innovation, and responsiveness to market demands. By streamlining its Berre operations and concentrating on its core USBC products, Kraton aims to enhance operational efficiency, leverage its global capabilities, and continue delivering innovative, market-driven solutions to meet evolving customer needs.
This strategic initiative reflects Kraton’s proactive approach to adapting to market dynamics, optimizing its production capabilities, and reinforcing its long-term position as a leading specialty polymer producer worldwide.
