Huntsman to close South Africa TiO2 plant

Huntsman will close its 25,000 t/yr titanium dioxide (TiO2) plant in South Africa by the end of the year because of low margins.

The Texas-based petrochemical producer previously said it would separate its TiO2 business from its pigments and additives segment, which saw earnings before taxes fall 5.6pc year-over-year to $540mn in 1Q. The company said last year it would close its TiO2 plant in Calais, France.

"Our margins remain well below historical norms despite some recent recovery from trough conditions," Huntsman Pigments and Additives division president Simon Turner said. "It is critical that we continue our successful cost reduction and synergy program to combat such conditions."

Following the closure of the plant in Umbogintwini, South Africa, Huntsman will provide TiO2 to customers from its European plants.