Huntsman Reviews Options for Textile Effects
Huntsman has announced it will undertake a strategic review of its Textile Effects division, which is headquartered in Singapore and supplies dyes and chemicals to the textile and related industries. The review, which will include a potential sale, is due to start early this quarter. The US chemical producer did not say how long it would take, other than it “plans to move expeditiously.”
Textile Effects operates eight primary manufacturing facilities in Germany, Switzerland, Mexico, China, India, Indonesia and Thailand, as well as 14 formulation distribution centers. The division’s revenue in 2020 was $597 million, making up 10% of Huntsman’s total sales. Adjusted EBITDA was $42 million, representing a slump of 50% from the year before.
"We believe now is the right time to explore options for Textile Effects. We expect that the division will generate close to $100 million of adjusted EBITDA in 2021, recovering much of what was lost due to Covid-19,” said chairman, president and CEO Peter Huntsman. “While its value-added portfolio of sustainable products is consistent with Huntsman's strategic direction, there may well be an external party that recognizes the value of these extremely attractive assets and will be a better owner for them.”
Author: Elaine Burridge, Freelance Journalist
