Huntsman to Cut More Than 1,100 Jobs, Close Plant

U.S. chemical maker Huntsman said on Thursday it plans to cut about 1,175 jobs, or about 9 percent of its workforce, by year-end to reduce costs and tackle the huge slump in chemical demand.

AP

Huntsman, which recently terminated its $6.5 billion agreement to be acquired by Apollo's Hexion Specialty Chemicals, also said it plans to shut-down its titanium dioxide plant located in Grimsby, in the United Kingdom.

In addition to trimming its own work force, Huntsman is also laying off about 490 contractors, which is a substantial percentage of its contractor workforce, a spokesman for the company told Reuters.

The Woodlands, Texas -based company expects to generate about $150 million in annualized operating cost savings from its actions.

Huntsman expects 2009 capital expenditures of $230 million—a reduction of $190 million from the $420 million spent on capital projects during 2008.

"This restructuring will allow us to improve our business where we most acutely feel the effects of the present global economic slowdown, mainly in our pigments and textile divisions," said Chief Executive Officer Peter Huntsman, in a statement.

The lower capital spending, coupled with the cost cutting initiatives will lower the company's 2009 costs by about $340 million.

Shares of Huntsman were down almost 4 percent at below $3 on the New York Stock Exchange.

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