The Huntsman plant, the division’s oldest and least efficient manufacturing facility, has an annual production capacity of 40,000 tonnes of titanium dioxide. Pigment production at the plant would cease during the first quarter of 2009. Approximately 200 full time employees and contractors work at the site. Annual operating cost savings resulting from the closure of the Huntsman plant would be approximately $28 million.
Huntsman is also reducing its full-time employment by approximately 1175 positions by year-end 2009, more than nine per cent of the total. Full-time contractors working in the Huntsman’s divisions and functions will be reduced by an additional 490 positions. Together, these reductions will result in operating cost savings to Huntsman of approximately $150 million.