Huntsman To Cut Workforce By About 900 Positions

(RTTNews) - Differentiated chemical products maker Huntsman Corp. (HUN) announced Monday a comprehensive restructuring plan, including job cuts, in order to improve the competitiveness and build a global market leading pigments and additives business.

"We are in the process of creating a global market leading pigments and additives business with superior technology and cost competitive manufacturing. With the inclusion of the recently acquired Rockwood pigments and additives businesses we have the broadest product offering of specialized pigments in the industry," President and CEO Peter Huntsman said in a statement.

The company plans to reduce its workforce by about 900 positions as part of a comprehensive restructuring program aimed at reducing costs to allow the company to compete more aggressively.

The company expects the actions to help achieve annual cost savings of about $130 million by the middle of 2016.

Further, the company said it is evaluating titanium dioxide capacity reduction options within its pigments and additives business. It is also taking steps for a successful initial public offering of its pigments and additives division.

"This restructuring will improve the competitiveness of our global pigments and additives business and allow us to compete more aggressively," Huntsman added.

Recently, the company successfully completed a major restructuring in its advanced materials and textile effects divisions, leading to annual benefits of about $150 million.

The company in early October completed the acquisition of Rockwood Holdings, Inc.'s (ROC) titanium dioxide pigments, color pigments & services, timber treatment chemicals as well as the rubber/thermoplastics compounding, and water chemistry businesses in a deal valued at $1.275 billion, including the assumption of $225 million in pension obligations.

HUN closed Friday's regular trading session at $25.52, down $0.63 on a volume of 3.74 million shares.