US Huntsman considers selling Textile Effects division
HOUSTON (ICIS)–Huntsman is considering selling its Textile Effects division as part of a strategic review of the business, the US-based polyurethane and epoxy-resins producer said on Tuesday.
Huntsman will start the review early in the first quarter of 2022, the company said. The division is based in Singapore. Huntsman does not have a timeline or deadline regarding when it could finish the review.
Huntsman expects the division will report nearly $100m in adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) in 2021, the company said.
The division makes dyes and textile chemicals used in pretreatment, colouration, printing and finishing. Huntsman operates 11 synthesis and formulation production sites in Asia, Europe and the Americas. Raw materials include amines, ethoxylates, acrylics and sulphones.
In 2020, Textile Effects accounted for 10% of the company’s revenues and 5% of its adjusted EBITDA.
“While its value-added portfolio of sustainable products is consistent with Huntsman’s strategic direction, there may well be an external party that recognises the value of these extremely attractive assets and will be a better owner for them,” said Peter Huntsman, CEO.
Huntsman’s other divisions include Polyurethanes; Performance Products, which makes amines and maleic anhydride (MA); and Advanced Materials, which makes epoxy resins and curing agents.
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