Huntsman Corporation has announced the completion of its review of its European Maleic Anhydride business, culminating in the decision to close its facility in Moers, Germany. The closure of operations at the Moers site is anticipated to be finalized by the end of the current quarter. This move comes after the European Maleic Anhydride business reported an adjusted EBITDA loss of approximately $10 million in 2024, highlighting the financial pressures that led to this strategic shift.

Going forward, Huntsman plans to continue serving its European customers for Maleic Anhydride from its North American facilities located in Pensacola, Florida, and Geismar, Louisiana. This consolidation of production aims to optimize operations and improve the overall profitability of the Maleic Anhydride segment. The company has stated that the closure of the Moers, Germany facility will result in a one-time non-cash asset impairment charge of approximately $75 million, which is expected to be recorded during the second quarter of 2025.

The decision to close the Moers facility underscores a broader trend in the chemical industry where companies are continuously evaluating their global manufacturing footprint to enhance efficiency and competitiveness. The economic viability of individual plants is often scrutinized in light of fluctuating raw material costs, energy prices, regulatory burdens, and market demand. For Huntsman, the consistent losses from its European Maleic Anhydride operations evidently necessitated a significant restructuring.

Maleic Anhydride is a versatile chemical intermediate used in the production of unsaturated polyester resins, 1,4-butanediol, fumaric acid, and a variety of other specialty chemicals. These derivatives find applications across numerous industries, including construction, automotive, marine, and agriculture. The strategic importance of Maleic Anhydride for Huntsman's portfolio is thus undeniable, even as the company adjusts its production strategy.

The shift to supplying European customers from North America presents both opportunities and challenges. On one hand, it could allow Huntsman to leverage economies of scale at its existing North American facilities, potentially leading to lower production costs per unit. This consolidation could also streamline supply chain management and reduce operational complexities associated with managing multiple international sites. On the other hand, increased shipping distances and potential tariffs could introduce new logistical challenges and impact delivery times and overall landed costs for European customers. Huntsman will need to carefully manage these aspects to ensure a seamless transition and maintain strong customer relationships.

By exiting the underperforming European Maleic Anhydride manufacturing and consolidating production in North America, Huntsman aims to strengthen its global position in the Maleic Anhydride market and enhance shareholder value. The $75 million impairment charge, while substantial, reflects the necessary accounting adjustment for a strategic decision aimed at long-term financial health.