Huntsman Announces Possible Closure In Basel
Switzerland-based Huntsman Corp. has announced plans to restructure its Textile Effects business in
order to improve its long-term global competitiveness. The changes could include closing production
and support offices in Basel affecting some 600 employees. Up to 500 positions may be eliminated,
and 100 jobs may move to other Huntsman locations worldwide. However, the company reports it is
committed to innovation and will not make any changes within the Textile Effects Research &
Technology department based in Basel. In addition, the restructuring may also include 100 new
positions in key markets. All changes are scheduled to occur before the end of 2013, and the
company has begun talks with labor representatives.
"We need to take bold action to fundamentally improve the poor financial performance of our Textile Effects division," said Peter R. Huntsman, president and CEO, Huntsman Corp. "We've made extensive and costly efforts to boost this division's competitiveness since acquiring the business in 2006, but as customers and competitors alike have increasingly moved their centers of business to Asia, we must realign ourselves according to these industry trends. The recent strengthening of the Swiss franc has greatly impacted our cost structure in Switzerland, which just serves to reinforce the need for realignment."
"The planned restructuring builds on the difficult, but successful changes undertaken in the last few years and is designed to ensure that the TE Business is strongly positioned to compete successfully against the ever increasing Asian competitor base and deliver long-term profitable growth for our shareholders and associates," said Paul Hulme, president, Huntsman Textile Effects. "Also, importantly from a customer perspective, in case of a possible closure, the transition of production to other Huntsman sites will be carefully phased, ensuring continued product availability and deliveries. We will, of course, manage this process openly and fairly, treating our employees with the dignity and respect they deserve."
September 27, 2011
"We need to take bold action to fundamentally improve the poor financial performance of our Textile Effects division," said Peter R. Huntsman, president and CEO, Huntsman Corp. "We've made extensive and costly efforts to boost this division's competitiveness since acquiring the business in 2006, but as customers and competitors alike have increasingly moved their centers of business to Asia, we must realign ourselves according to these industry trends. The recent strengthening of the Swiss franc has greatly impacted our cost structure in Switzerland, which just serves to reinforce the need for realignment."
"The planned restructuring builds on the difficult, but successful changes undertaken in the last few years and is designed to ensure that the TE Business is strongly positioned to compete successfully against the ever increasing Asian competitor base and deliver long-term profitable growth for our shareholders and associates," said Paul Hulme, president, Huntsman Textile Effects. "Also, importantly from a customer perspective, in case of a possible closure, the transition of production to other Huntsman sites will be carefully phased, ensuring continued product availability and deliveries. We will, of course, manage this process openly and fairly, treating our employees with the dignity and respect they deserve."
September 27, 2011
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