Huntsman to establish short-time work for its Textile Effects division in Basel and Schweizerhalle
Basel, Switzerland – From the end of February, Huntsman Textile Effects is suspending its technical operations for five to seven weeks at its Swiss locations in Basel and Schweizerhalle. 450 of approximately 1,300 employees will have to work short-time during that period. This measure is geared to substantially sustaining jobs and to ensure the competitiveness of the Basel/Schweizerhalle location.
Since October 2008, sales of Huntsman’s Textile Effects division have dropped more than anticipated compared to the previous year; and inventories have reached levels that are unacceptably high.
To mitigate the impact of these developments, several measures have already been implemented; amongst these are that operations were suspended for five weeks between Christmas and New Year, and that employees have been encouraged to compensate their possible overtime or to use up their 2008 holidays respectively.
As other sectors, the chemical industry has been hit by the recession to an extent that calls for tougher measures to be taken. “In order to sustain as many of our jobs as possible and to secure competitiveness of the location, we must take immediate action,” says Pascal Larpin, Head of Huntsman’s Basel/Schweizerhalle operations. “That’s why the site leadership has urgently decided to temporarily suspend operations during February, March and April and have the 450 employees affected by this decision work short-time.”
Depending on how the economy will develop, it might well be that Huntsman will have to further suspend operations later this year and introduce additional short-time work in Basel/Schweizerhalle. Larpin continues: “By having our employees working short-time instead of making them redundant, we are capable of fully serving our markets as soon as the economy recovers.”
About Textile Effects:
Huntsman’s Textile Effects is the leading global provider of high-quality dyes and chemi
cals to the textile and related industries, manufacturing a broad range of dye and chemical products that enhance the colour of finished textiles and improve performance characteristics, such as wrinkle resistance, lasting freshness and the ability to repel water and stains. The business currently serves over 4500 customers located in 80 countries.
Huntsman is a global manufacturer and marketer of differentiated chemicals. Its operating companies manufacture products for a variety of global industries, including chemicals, plastics, automotive, aviation, textiles, footwear, paints and coatings, construction, technology, agriculture, health care, detergent, personal care, furniture, appliances and packaging. Originally known for pioneering innovations in packaging and, later, for rapid and integrated growth in petrochemicals, Huntsman today has 13,000 employees and operates from multiple locations worldwide. The Company had 2007 revenues of approximately $10 billion. For more information, please visit the company’s website at www.huntsman.com.
Statements in this release that are not historical are forward-looking statements. These statements are based on management’s current beliefs and expectations. The forward-looking statements in this release are subject to uncertainty and changes in circumstances and involve risks and uncertainties that may affect the company’s operations, markets, pro-ducts, services, prices and other factors as discussed in the Huntsman companies’ filings with the Securities and Exchange Commission. Significant risks and uncertainties may relate to, but are not limited to, financial, economic, competitive, environmental, political, legal, regulatory and technological factors. Accordingly, there can be no assurance that the company’s expectations will be realized. The comp
any assumes no obligation to provide revisions to any forward-looking statements should circumstances change, except as otherwise required by securities and other applicable laws.