Weak economic conditions in key global markets, combined with rising fixed costs and continued volatility in the cost of raw materials, are driving Huntsman's Advanced Materials division to implement an improvement program which will align resources to focus on attractive higher-growth markets. The company expects benefits to the business in the range of $70 million.
Huntsman said its Advanced Materials business will further increase its focus on opportunities in industries such as aerospace, adhesives, high-performance coatings, power generation, green electronics and large-scale engineering projects which will drive maximum value for all stakeholders.
"The planned program is designed to ensure that the Advanced Materials business is strongly positioned to compete successfully in a challenging marketplace,” said James Huntsman, president of the Advanced Materials division. "We will continue to invest significantly in our business, in order to help our customers around the world address some of the engineering challenges they face over the coming years to produce lighter, more efficient materials."
The transformation program is scheduled to begin in the first quarter 2013, with full implementation expected to be completed over the next 18 months.