04 November 2009 15:35 [Source: ICIS news]
TORONTO (ICIS news)--The insolvency of textile chemicals major DyStar could lead to further consolidation within the industry, Peter Huntsman, chief executive of US chemicals major Huntsman, said on Wednesday.
Germany-based DyStar, which filed for insolvency in late September, is one of the main competitors of Huntsman in the textile chemicals market.
“Longer-term, [the DyStar insolvency] may lead to further consolidation in the textiles dyes industry, reduce manufacturing capacity and possibly help stabilise pricing,” Huntsman told analysts during the company’s third-quarter results conference call.
However, in the short-term, an insolvency on the scale of DyStar typically creates market confusion and erratic behaviour, he said.
Huntsman noted that third-quarter earnings in the company’s textile effects segment were disappointing, partly due to a sequential decrease in selling prices from the second quarter, on the back of competitive pressure.
However, demand was recovering, despite seasonal textile mill shutdowns in ?xml:namespace>
The company said it was seeing signs of recovery in
Also, Huntsman remained on track to cut fixed costs in its textiles chemicals segment by $60m by the end of the year, he added.
The company this year relocated the headquarters of its global textiles division to
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