The Huntsman board of directors has authorised management to conduct a strategic review of the textile effects division, which is headquartered in Singapore, including a possible sale of the division. The review will begin early in the first quarter of 2022, the company said in a media release.

"We have been transparent about our continued evaluation of divestment opportunities that are both in line with our strategic goals and in the best interests of our shareholders," said Peter R Huntsman, chairman, president and CEO. "We believe now is the right time to explore options for Textile Effects. We expect that the division will generate close to $100 million of Adjusted EBITDA in 2021, recovering much of what was lost due to COVID-19. While its value-added portfolio of sustainable products is consistent with Huntsman's strategic direction, there may well be an external party that recognizes the value of these extremely attractive assets and will be a better owner for them."

Huntsman has not set a timetable or a deadline for the conclusion of its evaluation of strategic alternatives for the textile effects division but plans to move expeditiously, and it does not intend to comment further unless and until the board has approved a specific course of action or the company has otherwise determined that further disclosure is appropriate or required by law.

The board of directors also authorised management of the company to implement a multi-year compensation plan for all officers and vice presidents designed to align with the interests of all shareholders and with the targets presented at the company's Investor Day in November.

A significant majority of the plan participants' equity incentives will be performance-based and tied to relative Total Shareholder Return and Free Cash Flow measures. In addition, the entirety of the company's incentive cash bonus programme will be linked to the achievement of the Adjusted EBITDA margin, Optimisation Programme and Free Cash Flow targets set out at the Investor Day. Each of these targets builds on a multi-year effort to improve upon the company's 2021 performance.

Fibre2Fashion News Desk (KD)