Switzerland-based Huntsman Textile Effects - a manufacturer of chemicals and dyes for finished textiles and materials, and a division of Huntsman International LLC - has completed primary changes associated with a previously announced reorganization designed to realize annual cost savings of $60 million (See " Huntsman Textile Effects Business Adopts New Structure," December 2, 2008).

In an effort to become a global company with a larger footprint in Asia while improving customer relationships and service quality, Huntsman has created a new sales and customer support organization in Asia, which now is the largest in the Textile Effects division. Elements of Textile Effects' Research and Technology (R&T) capabilities have been moved to a site in Panyu, China, and newly created positions at that site have been filled.

Huntsman is expanding its R&T services in India, and the company reports the expansion is progressing well, with the Mumbai team expected to be in place by the end of the second quarter.

The company also is in the process of moving its global headquarters and management team to Asia, and expects to release details related to location and timing shortly. At the same time, Textile Effects also is consolidating sales offices and laboratories in many countries.

"We are pleased with the rapid progress we have made toward making this business profitable and sustainable in the long term," said Paul Hulme, president, Huntsman Textile Effects. "With our new organization in place, we intend to move rapidly on completing the remaining elements of our plan."

In related cost-cutting measures, Huntsman will stop production at the end of February at its largest production facility in Basel, Switzerland, for up to seven weeks. During the shutdown, approximately 450 of the 1,300 employees will work part-time.

February 17, 2009