Huntsman has agreed to sell its European surfactants business to US specialty chemicals company Innospec as it continues to restructure its portfolio. The proceeds of $225 million will help reduce Huntsman’s debt. The proposed transaction, which is expected to close by the end of 2016, includes three plants in Saint-Mihiel, France, Castiglione delle Stiviere, Italy, and Barcelona, Spain. However, Huntsman said it remains committed to its surfactants businesses in the US and Australia where the company is backward-integrated into essential feedstocks.

Once the deal is complete, Huntsman said it will agree supply and long-term tolling arrangements with Innospec so it can continue marketing certain strategic products in its global agrochemicals, lubes and other unspecified businesses. President and CEO Peter Huntsman said the decoupling of the European surfactants business will allow the company to “concentrate its focus and grow the businesses within its portfolio with greater long-term strategic fit.”

This latest divestment is another step in Huntsman’s transformation of its Performance Products business. The company is currently doubling polyetheramines capacity in Singapore as well as implementing a cost-saving and improvement program. In 2014, the European commodity surfactants business – including an ethoxylation plant in Lavéra, France – was sold to Wilmar Europe.

Huntsman is currently engaged in a spin-off of its TiO2 , additives and textile-effects activities. The split is planned to be completed by the first quarter of 2017.