Huntsman Announces Plan to Reduce European Titanium Dioxide Capacity; Annual Cost Savings Expected to be ~$130M

Huntsman Corporation

today announced a plan to reduce its TiO2 capacity approximately 100kt, representing 13% of Huntsman's European TiO2 capacity. The plan will generate approximately $35 million of annual savings. Having looked at different options Huntsman proposes to close specific operations at its Calais, France site. 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. Peter R. Huntsman, President and CEO of Huntsman Corporation, commented: "With the recent deterioration in industry conditions we have reviewed our manufacturing network in terms of cost and potential. We are confident that by rationalizing our capacity we can continue to meet our customer's needs and improve our competitiveness as we create a market leading Pigments and Additives business." This announcement is in addition to the plan announced in December 2014. Annual cost savings from that plan are expected to be approximately $130 million and will be achieved by the middle of 2016. The plan announced today will be negotiated in full consultation with our employees and appropriate representative groups.