THE WOODLANDS, Texas (Jan. 26, 2009)—Huntsman Corp. said it aims to cut its work force by 9 percent to reduce costs across its divisions and functions, saving a projected $150 million.
The company also plans to cut another $190 million from its capital expenditure for 2009.
The major polyurethanes supplier said it had begun the process in the fourth quarter of 2008 and will reduce its number of full-time employees by about 1,175 by year-end 2009, cutting Huntsman's work force to about 11,000 people.
Full-time contractors working at Huntsman will be reduced by 490 positions. Total operating cost savings from these measures will be about $150 million.
Huntsman also said that it plans to close its titanium dioxide plant with capacity of 40,000 metric tons per year in Grimsby, England, “the oldest and least efficient manufacturing facility,” in its Pigments Division.
The plant will be shut in the first quarter of 2009, with the loss of about 200 jobs, saving Huntsman annual costs of about $28 million.
President and CEO Peter Huntsman said the company will cut also cut 2009 capital expenditure to $230 million, from the $420 million spent during 2008.
He said these savings will provide the company with a strong balance sheet and significant liquidity.