Huntsmanís New Textile Effects Organization Now in Place - Division well on track in further developing Asian footprint
Basel, Switzerland Ė Huntsman Corporation (NYSE: HUN) today announced that its Textile Effects division has completed all major elements of the previously announced restructuring of its organization and that the division is well under way in implementing its strategy to focus on selected global market segments and adopt a streamlined business support model more fully aligned with those segments.
ďWe are pleased with the rapid progress we have made toward making this business profitable and sustainable in the long term. With our new organization in place, we intend to move rapidly on completing the remaining elements of our plan,ď said Paul Hulme, President of Huntsman Textile Effects.
The new organization is designed to strengthen its relationship with strategic customers and improve service quality ─ a step which has been well received by the marketplace. The sales and customer support organization in Asia is now the largest in Textile Effects, consistent with the latest trends in market requirements as well as current forecasts of future business development potential.
A completed element of the Textile Effects plan includes a relocation of certain Research and Technology capability to the divisionís site in Panyu, China, with new hires now on board. Similarly, the build-up of R&T capabilities in India is making good progress and the Mumbai team should be largely complete and operational by the end of next quarter.
The relocation of the divisionís global headquarters and its leadership team to Asia is also making progress. An announcement of the timing and location is expected shortly.
Textile Effects is also sharpening its focus in other parts of the world to meet the demands of technology-driven markets and customers. Concurrently, a major consolidation of the divisionís sales offices and laboratories is taking place in many countries.
The measures announced to reduce complexity and fixed costs have already started to take effect. In jurisdictions with mandatory information and consultation processes with employee representatives, these processes are well underway. Additionally, the division has suspended production for up to seven weeks at its largest site, in Basel/Schweizerhalle (Switzerland). Approximately 450 of 1,300 employees will work a short-time schedule during the period, which is set to begin at the end of this month.
Once the plan is fully implemented, the company expects to achieve $60 million in annual savings.
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