Huntsman's Strategic Moves Amid Bear Market Pressures
Salt Lake City, Friday, 4 July 2025.
Huntsman Corporation is closing its Moers plant in Germany as part of strategic shifts to tackle bear market challenges. This shift focuses on high-margin segments, offering lessons to firms in similar turbulent environments.
Navigating the Bear Market
Huntsman Corporation, trading under the ticker symbol HUN, is strategically maneuvering through the bear market by realigning its focus towards high-margin segments. The company plans to shut down its Moers, Germany plant by the end of 2025. This move involves a $75 million non-cash write-off and aims to redirect resources towards expanding their methylene diphenyl diisocyanate (MDI) business, which is seeing a resurgence in demand [1].
Shifts in Corporate Focus
As the chemical industry faces pressures from geopolitical uncertainties and fluctuating commodity prices, Huntsman is targeting mid- to upper-teens margins through improved MDI pricing and cost reductions [1]. Huntsman forecasts a $15 million annual gain from its Geismar MDI splitter project, showcasing a burgeoning demand within sectors like insulation, automotive coatings, and industrial adhesives [1].
Financial Standing and Strategic Acquisitions
Despite reporting a $5 million net loss in Q2 2025, Huntsman’s adjusted EBITDA remained steady at $72 million, within its guidance of $60-90 million [1]. With a liquidity buffer of $1.3 billion, Huntsman is looking to acquire undervalued firms in the advanced materials domain, focusing on the aerospace sector, indicating a strategic expansion [1].
Credit Challenges and Industry Outlook
Moody’s recently downgraded Huntsman to Ba1, citing reduced earnings and elevated debt leverage, contributing to its challenging financial narrative [4]. This outlook stems from a broader downturn across the chemical industry, aggravated by high interest rates and slowed growth in key markets including the US and China [4].