In what it calls a restructuring move, chemical manufacturer Huntsman Corporation has announced plans to close four plants that make pigments and additives for plastics and other markets across the U.S and Germany.
The closures will save the Woodlands, Tex.-based company approximately US20 million by mid-2016, and will also result in the loss of 120 jobs.
“The initial phase of restructuring will include site closures, cost reduction initiatives and a move to centralized shared services, in addition to investment in customer focused R&D to secure future growth,” Huntsman said in a statement.
Manufacturing sites to be closed by year-end 2015, all of which are leased, include Cartersville, Ga.; East St. Louis, Ill.; and King of Prussia, Pa., in the U.S., in addition to Hainhausen, Germany. Products produced by these facilities will be supplied by other Huntsman facilities, including the company’s soon to be completed facility in Augusta, Ga.
“This announcement underscores our commitment to restructure and remove cost from our newly acquired assets and operations as quickly and efficiently as possible,” said Peter R. Huntsman, Huntsman’s president and CEO. “We are well on track to deliver more than US$140 million in total synergies, with US$60 million of that to be achieved in 2015. In addition to these savings, we have announced a plan to close the black end of our TiO2 plant in Calais, France that will generate US$35 million of annual savings.”
Huntsman is a global manufacturer and marketer of differentiated chemicals with 2014 revenues of approximately US$13 billion. The company operates more than 100 manufacturing and R&D facilities in more than 30 countries and employs approximately 16,000 workers.
