Huntsman Plans to Reduce European Tio2 Capacity

Huntsman Corporation, a global manufacturer and marketer of differentiated chemicals, has announced a plan to reduce its TiO2 capacity approximately 100kt, representing 13 per cent of Huntsman’s European TiO2 capacity.

After analysing different options Huntsman chose to close specific operations at its Calais, France site, which will generate approximately $35 million of annual savings.

Huntsman plans to close the ‘black end’ manufacturing operations and ancillary activities during 2015. The ‘black end’ is responsible for the start of the titanium dioxide manufacturing process. The ‘white end’ is used to finish and pack TiO2 and will remain operational employing up to 100 people on the site.

Commenting on the plan, Peter R Huntsman, president and CEO of Huntsman, said: “With the recent deterioration in industry conditions we have reviewed our manufacturing network in terms of cost and potential. We are confident that by rationalising our capacity we can continue to meet our customers’ needs and improve our competitiveness as we create a market leading pigments and additives business.”

Huntsman clarified that the latest announcement is in addition to the plan announced in December 2014, which will result in annual cost savings of approximately $130 million, and will be achieved by the middle of 2016.

In 2013, Huntsman clocked revenues of approximately $13 billion including the acquisition of Rockwood’s performance additives and TiO2 businesses.

Huntsman serves a broad and diverse range of consumer and industrial end markets. It operates more than 100 manufacturing and R&D facilities in over 30 countries and employs approximately 15,000 associates within its 5 distinct business divisions.