| Huntsman Restructures New Textile Effects Business
Tuesday October 24, 8:30 am ET
Company to Spend $150 Million on Restructuring and Asian Expansion
THE WOODLANDS, Texas, Oct. 24 /PRNewswire-FirstCall/ -- Peter R. Huntsman, President and CEO of Huntsman Corporation, today announced that the Company has completed the strategy review for its global Textile Effects business, which Huntsman acquired from Ciba Specialty Chemicals Inc. on June 30, 2006.
Mr. Huntsman said the Company will spend about $150 million over the next three years on a restructuring program that will see Textile Effects' operations expand significantly in Asia but consolidate in the Americas and in Europe. The company estimates that up to 650 positions will be eliminated and 300 created, globally.
"We committed to the market that we would present a restructuring plan for this newly acquired business at the end of our first 100 days of ownership. This plan should greatly enhance the profitability of this business and bring its EBITDA from less than 10% to 14-16% of sales over the next three years," said Mr. Huntsman.
Mr. Paul Hulme, President of Huntsman's Materials & Effects division, which includes the new business, commented: "We firmly believe this business to have been an outstanding addition to our portfolio of differentiated chemical products, but we knew when we bought the business that one of the primary challenges facing the textile chemicals and dyes industry has been the ongoing migration of its customers from North America and Europe, principally to Asia. This restructuring program will grow our apparel and home textiles business in Asia, and will include the opening of a new technical center in Qingdao, China as well as two new formulation and distribution centers in that country. In the Americas and in Europe, our focus will be to expand our technical textiles and high-end apparel and home textile businesses and reach a world-class cost position globally in all functions, including production, sales and distribution."
Huntsman's Textile Effects business is a leading global supplier of textile solutions, manufacturing a broad range of dye and chemical products that enhance the color of finished textiles and improve such performance characteristics as wrinkle resistance and the ability to repel water and stains. The business serves over 10,000 customers located in 80 countries.
Huntsman is a global manufacturer and marketer of differentiated and commodity chemicals. Its operating companies manufacture products for a variety of global industries, including chemicals, plastics, automotive, aviation, textiles, footwear, paints and coatings, construction, technology, agriculture, health care, detergent, personal care, furniture, appliances and packaging. Originally known for pioneering innovations in packaging and, later, for rapid and integrated growth in petrochemicals, Huntsman today has 15,000 employees and 78 operations in 24 countries. The Company had 2005 revenues of $13 billion.
Source: Huntsman Corporation
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