Huntsman Corporation has completed the strategy review for its global Textile Effects business, which Huntsman acquired from Ciba Specialty Chemicals Inc. on June 30, 2006. CEO Peter 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.
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.”