Huntsman Announces Significant Restructuring at its Textile Effects Business in Basel, Switzerland

Huntsman Corporation announced today that

its Textile Effects (TE) division plans

to implement a significant restructuring,

including the possible closure of its

production facilities and business

support offices in Basel, Switzerland, as

part of an on-going strategic program

aimed at improving its long-term global

competitiveness.
The planned restructuring and the

possible closures could affect

approximately 600 positions in Basel,

with potentially 500 job losses and 100

positions moving to other sites across

the organization, to build capability

closer to customers. In addition, there

will be a further 100 new hires added in

key markets and the division's Basel-

based Research & Technology department

will not be affected by the planned

restructuring, as the Business remains

totally committed to strengthening its

innovation capability.

Consultations with labor representatives

have commenced and the planned

restructuring (including possible

closures) are targeted for completion by

the end of 2013.

Commenting on the planned restructuring,

Peter R Huntsman, President and CEO of

Huntsman Corporation, said: "We need to

take bold action to fundamentally improve

the poor financial performance of our

Textile Effects division. 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 re-align

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 re-

alignment."

Paul Hulme, President of the Textile

Effects division, added: "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. 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."

Huntsman's Advanced Materials division

will continue activities at its sites in

Basel and Monthey, Switzerland.

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