Huntsman’s textiles chems gained on DyStar troubles

19 February 2010 17:15  [Source: ICIS news]

TORONTO (ICIS news)--Huntsman’s textile chemicals segment has gained market share in the wake of the insolvency of competitor DyStar last year, the US-based chemicals major said on Friday.

“As a result of the market confusion created by the [DyStar insolvency] we have been able to win competitive market share,” chief executive Peter Huntsman said during the company’s 2009 fourth-quarter results conference call.

Germany’s DyStar Group filed for insolvency in September and shortly afterwards shut most of its production in that country. It was acquired earlier this month by India’s Kiri Dyes and Chemicals, which is moving DyStar to Singapore.

During the quarter, Huntsman saw textile chemicals volumes up 25% year over year in Asia and the Middle East, its largest markets, Peter Huntsman said.

Dyeing, printing and cotton knit businesses in China were experiencing a good market recovery. Also, in the automotive supply chain, customers were restocking, he added.

At the same time, Huntsman was achieving cost reductions, it said. The company has moved the bulk of its textile chemicals production to Asia in recent years.

Huntsman’s fourth-quarter textile chemicals sales rose 10.6% to $187m (€137m), and the segment narrowed its quarterly loss to an adjusted operating loss of $13m from a loss of $20m in the 2008 fourth quarter.

However, for the full 12 months of 2009, the adjusted operating loss widened to $56m from a loss of $10m in 2008, on sales of $691m, down 23% from 2008.

Textile chemicals had suffered last year as global apparel consumption plummeted by about 20% in 2009 from 2008, Huntsman executives said during the call.

However, Huntsman’s textile prices and contribution margins per unit were stable, they stressed.

The decline was due falling volumes, Huntsman executives said. This meant that with a cyclical recovery, the business should become profitable again later this year, they said.

In a related industry development, Swiss specialty chemicals major Clariant said this week it would close its textile dyes and chemicals production in Switzerland and transfer production to locations in Asia.

($1 = €0.73)

For more on Huntsman and other producers visit ICIS company intelligence
To discuss issues facing the chemical industry go to ICIS connect

By: Stefan Baumgarten
+1 713 525 2653

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly