Market Insights

Textile Chemical Industry Poised for Growth in Asian Region

Posted on 10 February, 2010 | Tags:

Huntsman's recent acquisition of manufacturing facility for the production of intermediates and specialty products for textiles is an important step in the growth strategy. Paul Hulme, President, Textile Effects Division, Huntsman and Rohit Aggrawal, Global Vice President, Apparel and Home Textiles in conversation with Mousumi Ghosal.

Huntsman Corporation, a global manufacturer and dealer of differentiated chemicals, has acquired the Baroda Division of Metrochem Industries, a manufacturing facility for the production of intermediates and specialty products for textiles. The Baroda Division currently has more than 700 employees and contractors with annual sales of approximately 2.4 billion rupees.  According to the deal Huntsman will integrate the Baroda site with its   existing manufacturing sites in Qingdao and Panyu (China), as well as Mahachai (Thailand). This acquisition will make Asia a principal hub of the company's Textile Effects (TE) division and the main manufacturing platform to support the future of the technical textiles industry in the region and ensure it's long-term global competitiveness.
"This acquisition is a major milestone in our strategy. With this move we are realigning our manufacturing footprint towards Asia, the region that will fuel our growth in the years to come," says Paul Hulme, President, Huntsman's TE division. Huntsman Textile Effects is the leading global provider of high-quality dyes and chemicals to the textile and related industries, manufacturing a broad range of dye and chemical products that enhance the color of finished textiles and improve performance characteristics. "Huntsman took over the business of Ciba Specialty Chemicals on July 1, 2006 and since then the journey of Textiles Effects has become more interesting and challenging. This division in India has ambitious growth plans and 2008 had a sales turnover of USD 700Mio'' adds Hulme. The site in Baroda is the second-largest within the Huntsman Textile Effects division and has a huge possibility for further expansion. The expansion   possibility is especially in the fields of specialty dyes and key intermediates needed for the production of dyes in India and other TE plants.
"The area of technical textiles has vast possibilities of growth and its demand is increasing day-by-day along with the globalization having new materials, technologies and innovations in production around the world. In the Asian region, with the business expansion it will also create lots of job opportunities. Supporting the growth of the textile industry means exploring opportunities beyond the conventional textile chain of fiber to fashion penetrating the nonwoven and technical segments of the textiles industry," says Mr. Rohit Agrawal, Global Vice President, Apparel and home textiles. Technical textile industry is projected to have 10 percent growth around the globe by 2012. As part the division's extensive strategic transformation, which has achieved significant success to date, Huntsman's Textile Effects division also recently unveiled its new business structure, designed to focus clearly on selected market segments and shifting its center of business to Asia. An important component of the new structure is the recently announced move of the division's global headquarters from Basel to Singapore. The company carries a market share of 49 percent in the automotive industry, 57 percent in the construction industry, 20 percent in the footwear industry with a 10 percent in the textile effects industry in the Indian market.  "The Huntsman Textiles Effects in India has grown 3.2 times within 2000-2009," informs Hulme.
The company also highlights that it will provide world-class production facilities, advanced development and application labs, highly skillful and team of 1400 associates, additional investment to support market growth in the Asian region. However, there are competitors that are moving into China and India and Asia becomes the battlefield for specialized services, innovations, products and talent.  Protection of environment, health and safety is a hot issue nowadays as the development of several industry lead to various negative effects on the environment. Thus, with many industries  Huntsman Textile Effects division has taken up corporate social responsibilities to fight with the challenge. The company's resources are more focused into sustainable innovations. It is not only working on for developing innovative products that reduce environmental impact, but also is finding smart processes that support customers and environment through reducing and optimizing the use of natural resources.