Evidence of how inflation impacts the industrial value chain is evident on the website operated by Trinseo, an NYSE-quoted American company that recently occupied two floors of the impressive new build, 76 Sir John Rogerson’s Quay in Dublin.

Trinseo’s business is specialty materials such as polystyrene, base plastics, coatings, adhesives and sealants, and other engineered materials used by manufacturers.

Many of these products are derivatives of petroleum, which has become much more expensive recently. On its website, Trinseo announced seven price hikes for its polystyrene products through the first half of 2022, though that didn’t fully protect margins.

The company’s Q1 gross margin was 12.7% compared with 19.2% a year earlier, highlighting how input inflation eats into corporate profitability.

Despite Q1 sales increasing 40% year-on-year to $1.4bn, operating profit plunged to $65m from $155m a year earlier. Investors have noticed, with the share price retreating from $56 in February to $36 recently.

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None of this will have much impact on Trinseo’s presence in Ireland. The company has established a Global Business Services centre overlooking the Liffey, where around 120 people are employed in finance, procurement, credit control and IT.

Dublin has become something of a magnet for multinational GBS activities, as firms can quickly establish their operations by fishing in the large talent pool.

Trinseo president and CEO Frank Bozich said: “While other cities were considered, Dublin came out on top. As a gateway destination to Europe, it’s a prime position to establish and grow our GBS team.”

Based in Berwyn, Pennsylvania, and with a global operating headquarters in Horgen, Switzerland, Trinseo was established in 2010, employs c.3,800 staff and has 40 manufacturing plants worldwide.

Its origins go back to 1897, when chemist Herbert Henry Dow established the Dow Chemicals business. Dow Chemicals spun out its Styron business to private equity player Bain, who floated the company as Trinseo in 2014.

Trinseo plc is a public limited company under Irish law, after the former publicly-traded parent entity, Trinseo SA, was merged with and into Trinseo plc in October 2021.

The rationale for this ‘redomiciliation’, according to the company, was to provide a favourable legal and regulatory infrastructure, dividend withholding tax benefits to shareholders, and operational efficiencies and reductions in its operating and administrative costs.