US Huntsman announces plan to close its South African Titanium Dioxide manufacturing facility

US Huntsman announces plan to close its South African Titanium Dioxide manufacturing facility

Huntsman Corporation announced on July 6, 2016, a plan to close its 25000 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 USD 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.”

Huntsman Corporation is a publicly traded global manufacturer and marketer of differentiated chemicals with 2015 revenues of more than USD 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 15000 associates within five distinct business divisions.

www.huntsman.com


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