Specialty chemical maker Huntsman Corp. said Tuesday it aims to save $60 million annually by expanding its global textile effects business in Asia and consolidating it in Europe and the Americas.
A spokesman for Salt Lake City-based Huntsman said the company estimates that about 470 jobs could be affected by the moves, which will take place over several years. Huntsman did not disclose possible financial charges arising from the reorganization.
The company's Switzerland-based textile effects business, which makes chemical and dye products that enhance the performance properties and colors of finished textiles and materials, will be changed from a regional to a global, market-focused organization, Huntsman said.
All business and support functions will be aligned to the new structure.
"The streamlined Textile Effects business will be comprised of two global strategic business units: Apparel & Home Textiles and Specialty Textiles, which together will focus on nine growth market segments," Huntsman said.
In 2007, Columbus, Ohio-based Hexion Specialty Chemicals agreed to buy Huntsman with financing from Credit Suisse and Deutsche Bank. Recently, when the global economy turned down, Hexion tried to back out of the deal but was blocked from doing so by a court. Since then the two banks have said they cannot fund Hexion's buyout of Huntsman, which is threatening to enforce its contractual rights in the matter.
Shares rose 5 cents to $6.03 in midday trading.
Huntsman Corp. is based in Salt Lake City but has administrative headquarters in The Woodlands, Texas.
