Basel, Switzerland - Reacting to continued increases in labor, raw materials, utilities and transport costs over the past few years, the Textile Effects Division of Huntsman is announcing price increases to become effective this month.
As the majority of these cost increases have been absorbed by the company, this has resulted in continued downward pressure on its operating margins that can no longer be accepted. “As with any successful partnership between supplier and customer, there needs to be a win-win proposition that allows our customers to be successful in their chosen markets and for ourselves to be successful by returning operating margins that justify on-going re-investments and the cost of capital”, said Paul Hulme, President of Huntsman Materials & Effects.
Since Huntsman acquired Textile Effects from Ciba Specialty Chemicals in June 2006, it has committed over $210 Million in restructuring and investments to further improve its cost competitiveness and to ensure that the division continues to further improve its current levels of service in the future. In addition, through additional investment in its on-going research and technology department, Textile Effects has strengthened its technology portfolio and platform, significantly increasing the number of exciting new products and projects within its development pipeline. The division is also investing in capacity expansion to relieve lead times on product lines which have proven extremely successful since launch.
“I believe that with this level of on-going investment and on-going commitment to innovation, we will continue to maintain our position as Lead Innovator and Solution Provider in the Textile Dye and Chemical Industry and our continued desire to be the Number One Partner of Choice, both today and in the future”, Hulme added.
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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 14,000 employees and over 75 operations in 24 countries. The Company had 2006 revenues from all operations of over $13 billion.
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, products, services, prices and other factors as discussed in the Huntsman companies’ filings with the U.S. 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. In addition, the completion of any transactions described in this release is subject to a number of uncertainties and to negotiation and execution of definitive agreements among the parties and closing will be subject to approvals and other customary conditions. Accordingly, there can be no assurance that such transactions will be completed or that the company’s expectations will be realized. The company assumes no obligation to provide revisions to any forward-looking statements should circumstances change, except as otherwise required by applicable laws.