RAISE – Conroe Transformation Journey

The Conroe RAISE transformation was undertaken as a focused 18-month effort to improve the site’s core operating performance across safety, reliability, sustainability, and cost discipline. Built on a strengthened Zero Harm culture and guided by LEAN principles, the team raised expectations, reinforced accountability, and embedded more consistent operating routines to support even safer, reliable, and efficient performance. This work helped Conroe achieve a zero OSHA recordable incident rate and a zero Process Safety event rate by January 2026, reflecting durable improvement in both personal and process safety performance.

Operational reliability also advanced as the site shifted from a reactive model to an even more structured and disciplined approach. Clearer ownership and stronger daily routines increased internal OEE from 81% to 90%, enabling more stable and predictable operations. These gains unlocked 32 additional days of operational capacity and improved overall manufacturing resilience.

Sustainability performance improved significantly. A major steam network turnaround, combined with targeted efficiency measures, reduced steam intensity by 15% - equivalent to 8 million pounds less steam consumption per month - strengthening the site’s long-term energy profile and supporting more efficient resource use. Conroe also maintained stable cost performance across 2023, 2024, and 2025 despite operating in a high-inflation environment while bringing the new EGRADE® unit online. In addition, an organizational realignment delivered a 26% improvement in employee productivity, enabling the site to meet rising operational demands more efficiently while preserving capability and performance. These gains also reflected the site’s ability to operate with a lean workforce while maintaining safe operations and consistent fixed cost performance.

Together, these results show how disciplined leadership, cultural alignment, and a LEAN-driven transformation effort can deliver sustained performance improvement across a complex manufacturing operation.

Growing the Power Business through Operational Excellence

MANUFACTURING EXCELLENCE — FINALIST — Advanced Materials

THIS MULTIYEAR INITIATIVE was undertaken to improve the profitability and competitiveness of the Advanced Materials Power business in Asia by addressing operational bottlenecks, reducing avoidable cost, improving product quality, and better aligning teams around disciplined execution. Guided by the divisional 360 Strategy, the Panyu team strengthened planning, production, quality, and cost management in ways that supported measurable business improvement.

Financial & Capacity Impact

From 2023 to 2025, the initiative contributed to approximately $6M of EBITDA improvement through higher throughput, improved cost productivity, and better utilization of existing capacity. Production volume increased by approximately 25%, while cost optimization initiatives delivered structural savings of approximately $400K in 2024 and $800K in 2025. In addition, output from a key product line within the Power portfolio increased materially over a relatively short period, helping maximize use of the existing production line.

Manufacturing Excellence

With a focus on cross-functional alignment, the team redesigned Master Production Scheduling and implemented a “No Stop” model to reduce idle time between steps. Through Lean and Six Sigma initiatives, batch cycle time for a key product line improved by approximately 17%. These gains were supported through coordinated collaboration across process development, manufacturing, supply chain, commercial, and supporting functions, reinforcing consistent execution in line with shared business priorities.

Enhancing Customer Experience

Recognizing the importance of product quality to customer experience, the Panyu team focused on reducing foreign object debris (FOD) in the manufacturing process through statistical process control, real-time monitoring, and strengthened 5S discipline, a workplace organization and housekeeping method. These efforts improved product consistency and supported stronger safety performance and cost competitiveness. The project also connected quarterly financial reviews with active engagement of shopfloor associates to build greater transparency, ownership, and understanding of how daily operating decisions affect business performance. In doing so, the team strengthened its ability to respond to changing market conditions and support the long-term competitiveness of the business.

“Enriching Lives by Steps” in Great China, Turning Wellness Into Community Impact

Huntsman Values Philanthropy

From March to April 2025, Huntsman China held its sixth annual “Enriching Lives by Steps” walking campaign, encouraging employees to track their daily steps via a mini-program and walk more during breaks and commutes. Originally launched by the Shanghai Campus, where the APAC headquarters is located, the initiative has since gained support and participation from various sites across China, promoting a healthy balance between work and exercise. Adopting a “movement for charity” model, every 5,000 steps logged translated into 1 RMB (0.15 USD) donation – a simple yet powerful way to link personal wellbeing with positive social impact.

This year, a total of 475 employees in Greater China – including mainland China, Taiwan and Hong Kong – took part in the initiative. Collectively, they walked an impressive more than 166 million steps, translating to a total fund of RMB 33,312 (USD 4,840). The donation was presented – through Huntsman’s TEROL site in Taiwan – to the Taoyuan Kuanyin Loving Home, an organization dedicated to improving vocational training and supporting the independence of people with disabilities.

“This campaign is more than a walking – it is a true reflection of our team’s compassion and collective spirit. Every step taken by our employees represents care for those in need and our shared mission to enrich lives across Greater China.” Said Kathy Miao, Admin Service Manager of Campus Shanghai.

Past editions of the walking campaign have directed similar step-based donations to community organizations serving vulnerable groups near different Huntsman sites in China. Beneficiaries have included long-term community partners near the AdMat site in Guangzhou and the Polyurethanes Caojing site in Shanghai.

“The walking campaign has connected health, teamwork, and community engagement. It demonstrates how small, everyday actions can collectively create lasting social value – reinforcing Huntsman’s culture of care and responsibility.” – Enshan Sheng, Managing Director, Campus Shanghai

Spreading Holiday Warmth in Texas

Huntsman Values Generosity

In The Woodlands, Texas, the spirit of giving came alive through two meaningful community efforts that brought employees together in service and generosity. On December 18, our team joined the Light the World Giving Machine initiative, a unique program featuring vendingstyle kiosks where visitors can purchase life-changing items for individuals and families in need. During “Huntsman Day,” Huntsman doubled the impact by matching every donation dollar for dollar – supporting a range of local and international charities and extending the reach of each contribution.

At the same time, associates embraced the YMCA Angel Tree program as part of Huntsman’s annual Holiday Giving Campaign, fulfilling wish lists for children and families who might otherwise go without. This effort reflects our ongoing commitment to uplifting our neighbors and ensuring every family feels the warmth of the season.

“I’m proud of how our global teams showed up for others this season; we’ll carry that same spirit of accountability, inclusion, and impact into the year ahead.” – Wade Rogers, Chief Compliance Officer and Sr. Vice President, Global Human Resources