THE WOODLANDS, Texas,
July 6, 2016 /PRNewswire/ -- Huntsman
Corporation (NYSE: HUN) announced today a plan to close its 25,000
metric ton TiO2 manufacturing facility based in
Umbogintwini, South Africa during
the fourth quarter 2016. Closure of the facility will have a cash
pay-back of less than two years. Cost savings from this
closure are in addition to the approximately $200 million previously announced.
Employing approximately 140 Associates, the Umbogintwini plant
is the smallest and oldest TiO2 manufacturing plant in
the Pigments and Additives division. Under the proposed plan,
production at the plant will end during the fourth quarter 2016
after which Huntsman will serve its customers in the region with
existing capacity from its European TiO2 facilities.
Simon Turner, President of
Huntsman Pigments and Additives division said: "Our margins remain
well below historical norms despite some recent recovery from
trough conditions. It is critical that we continue our successful
cost reduction and synergy program to combat such conditions. We
have sufficient capacity across our production network to allow us
to close our smallest facility, still meet our customers' needs and
improve our overall competitiveness. We appreciate the support of
our associates at the Umbogintwini facility and we will work
closely with them and our representative groups to ensure that we
manage this difficult situation with due care and respect."
Peter R. Huntsman, President and
CEO of Huntsman Corporation commented: "This closure increases the
competitive positioning of our Pigments and Additives business and
is an important step in the process as we work towards a
separation. The separation of our Pigments and Additives
business will come through either a spin to our shareholders or
other strategic transaction. We continue to diligently work
towards this objective."
About Huntsman:
Huntsman Corporation is a publicly
traded global manufacturer and marketer of differentiated chemicals
with 2015 revenues of more than $10
billion. Our chemical products number in the thousands and
are sold worldwide to manufacturers serving a broad and diverse
range of consumer and industrial end markets. We operate more than
100 manufacturing and R&D facilities in approximately 30
countries and employ approximately 15,000 associates within our 5
distinct business divisions. For more information about Huntsman,
please visit the company's website at
www.huntsman.com.
Social Media:
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twitter.com/Huntsman_Corp
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LinkedIn:
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Forward-Looking Statements:
Statements in this
release that are not historical are forward-looking statements.
These statements are based on management's current beliefs and
expectations. The forward-looking statements in this release are
subject to uncertainty and changes in circumstances and involve
risks and uncertainties that may affect the company's operations,
markets, products, services, prices and other factors as discussed
in the Huntsman companies' filings with the U.S. Securities and
Exchange Commission. Significant risks and uncertainties may relate
to, but are not limited to, financial, economic, competitive,
environmental, political, legal, regulatory and technological
factors. The company assumes no obligation to provide
revisions to any forward-looking statements should circumstances
change, except as otherwise required by applicable laws.
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SOURCE Huntsman Corporation