Huntsman Corporation has announced a company-wide cost reduction initiative across its divisions and functions which comprises of 1175 job cuts - more than 9% of its total 12,770 workforce - by end of the year. In addition, 490 full-time contractors working in the company's divisions and functions will face redundancies. The company's Pigments Division will shut its Grimsby-based 40,000 tpa titanium dioxide plant in U.K during Q1 - 2009.
The company wide job reductions are expected to lead to annualized operating cost savings of US$150 mln. Huntsman will also curtail its 2009 capital expenditures to US$230 mln - about US$190 mln less than US$420 mln spent on capital projects during 2008. The steps will take approximately US$340 mln out of company's cost structure in 2009. In addition, the US$1 bln in payments received from Apollo Management, L.P. will pose a strong balance sheet and significant liquidity for tiding over the uncertain economic times.
24-Jan-09 
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