2010 And 2011 Will Be More Difficult Than 2009: Peter Huntsman
With economic turmoil, environmental concerns and climate change
occupying the hotspots, the chemical industry is poised to change
globally. To know what lies ahead, ET caught up with Peter
Huntsman, CEO, Huntsman Corporation?a global producer of
differentiated chemicals with revenues over $10 bn annually.
Excerpts.
How has the chemical industry changed in last decade?
Globally we have seen a tremendous transformation in the
chemicals industry over the last decade. A few years ago the best
of producers were in the North America or Europe, but today I
believe the best producers are in the Middle East, China and say
Reliance in India. The commodity side of the chemical industry is
undergoing a difficult phase right now because the Middle East is
coming up with tremendous amount of new capacities. They have the
advantage of new technology, very large scale and low cost raw
material .
Is the difficult phase for commodity chemicals likely to prolong
further?
In the view of the new capacities coming up in the Middle East,
2010 and 2011 will be more difficult than 2009 for the commodity
chemicals globally. As I look at this, this is not a case of over
capacity. Much of the pain will come companies like Reliance,
SABIC and others emerging market giants leveraging their geographical
or feedstock advantages and investing in new technologies and new
capacities.
The overcapacity is going to be in countries like US, where 20-30
year old plants are operating. Suddenly, they now have to compete
with units that are 5 times bigger and working on
state-of-the-art technology operating out of some faraway place.
I think there will be tremendous transformation in the Americas
and Europe in the commodity chemicals business.
As regards Huntsman, we used to be this segment of the chemicals
industry till few years back. However, when I saw these new
facilities coming up in India and the Middle East, I realised
there was no way our ageing plants could compete against them. As
a result, two years back we got out of all those commodity
businesses and moved on to the specialty chemicals.
Now most of our products are now based on technology,
innovation, where the size doesn’t matter. We manufacture them India, China,
Saudi Arabia, Europe but our cost is pretty much the same all
around the world. That’s the difference between a
commodity and specialty business.
So you think the chemical companies in the US and Europe would
focus only on the specialty chemicals in the future?
Yes, I think so. The specialty chemicals industry today is 30% in
US, 40% in EU and rest in Asia-Pacific . Here the competition is
not on price or raw materials, but on product technology and
innovation.
In the commodity space if one processes two or three raw
materials, we have fifty or sixty raw materials, which come
together. This is an industry, which is good for companies with a
global footprint and the demand for these are global.
However, the rules of the game are totally different here. The
customers, suppliers, transportation needs, the development,
research efforts - everything differs. Hence it is very difficult
to change over from commodities to specialties quickly . Huntsman
had been in this for the past 15-20 years developing new
technologies and innovating, so the changeover became possible.
If you are not already in it today, it is going to be difficult
to get in it in future.
What are Huntsman’s plans for India?
Just ten years ago we had less than 10 employees in India. That
number rose to 250 three years back and as of now we have around
1500 associates here in India. Our sales also grew rapidly in the
period to nearly $500 million at present. Today nearly 50% of
Huntsman’s Indian business comes from
chemicals catering to the textiles industry. Within next five
years we plan to double our sales in India to $1 billion. We will
be investing in excess of $100 million over next five years,
which will be for not just expanding capacities and strengthening
the R&D , but also for mergers and acquisitions.
What role do you think environmental concerns will play in the
future of the chemical industry?
Environmental concerns are surely playing a great role in the
working of the chemical industry today At Huntsman we have always
tried to move away from petroleum feedstock to bio-based sources
such as glycerine, bio-diesel , vegetable oils and bio-ethanol ,
to name a few. We are also exploring other renewable fuel
technologies as well as agri-feedstock to make more of our
products bio-based . Other efforts include high performance
lighter products for improving aircrafts’
fuel efficiency or
innovative composites and resins for fuel cell applications.
Environmental issues are going to be equally important in India
or China in coming years as they are in the US or Europe. If you
go to Sierra Nevada mountain in California, nearly 30% of small
particulate pollutants found there have their origins in the
China’s coal burning power plants. Hence
this is no longer a regional problem but rather a global problem.
Having stringent and uniform environmental norms will certainly
help the chemicals industry. This will encourage introduction of
better technologies and a much more responsible attitude from the
chemical companies.
What are your views on the climate change?
Well, the chemical industry can either be part of the problem or
part of the solution. Right now, I believe some companies are
being part of the problem while others are part of the solution.
Too many countries and companies are fighting against the
environmental initiatives presently. But in my opinion, we are
already beyond the argument stage with climate change. Crude oil
is a dangerous raw material! We need to get away from it as
quickly as we can. And it is not just about pollution; dependence
on oil is also putting the reins of our future economic growth in
the hands of unfriendly countries.
I don’t understand why the US doesn’t take more initiatives in this
area. We are 5% of the world’s population, produce 8% of world’s oil but consume 25% of the world’s oil. Why don’t we take lead in this? We don’t have any right to ask countries
like India to take the first step.
... but if not oil then what?
Part of this is looking for alternatives to oil, but there is not
enough solar, wind energy to replace it fully. The other part is
to use oil judiciously, conserve it. But our mentality towards
oil consumption needs to change. In a place like Texas when it is
extremely hot in the summer, we have freezing cold inside the
buildings. Do we really need that? Huntsman is one of the largest
producers of polyurethane foam, which is one of the most
efficient insulating materials.
We are developing paints and coatings for roofs that will be able
to reflect heat in the sunlight. The oil conserved through these
methods will be equivalent of taking a quarter of all cars in the
world off the road. The US alone can save nearly 3-4 million
barrels of oil every day, if we have the same driving standards
as in the Europe ? that’s more than what India consumes
today.
Some change is already becoming visible. For example, in the US
government’s cash for clunkers programmes, we
saw people getting rid of their low mileage vehicles such as
pick-up trucks and SUVs replacing them with Hondas and Toyotas.
That underlines the change in the mindset. America needs to be
bold and take the lead in petroleum conservation because we
consume the most in the world.
Huntsman Corporation and Zamil Group Holding Company have signed
a non-binding memorandum of understanding (MoU) to explore the
feasibility of building a joint venture in Jubail, Saudi Arabia.
The venture will produce morpholine and Diglycolamine
Agent (DGA)amines.
According to the MoU, the joint venture will operate the proposed
plant on a 50:50 basis and would use technology licensed from
Huntsman, with Huntsman also having the rights to global sales
and marketing of products produced at the plant.
Daniele Ferrari, president of the Performance Products division
of Huntsman, said: "This planned joint venture would make
Huntsman the most global supplier of DGA and morpholine, with
assets in Europe, the United States and now the Middle East.
"It would also fulfill part of our on-going strategy of
expanding in the Middle East to better serve local and global
customers, including the growing gas-treatment market in the
Gulf."
He added: "The Zamil Group Holding Company is a major player
in the region's petrochemical industry and we are delighted to
explore the opportunity of cooperating again with such a dynamic
company.
Fahad Al-Zamil, president of Zamil Group Holding Company/Jubail
Operations, said: "The underlying principle governing the
operations of our company is strength through diversity and this
joint venture would be the latest step in our continued strategy
of investing in higher value-added chemicals."
He added: "We have a history of successful partnerships with
Huntsman Corporation
and we would be very pleased to provide the JV with a stable and
successful base in Saudi Arabia."
Amines are chemical intermediates used in a very wide range of
products and applications, including detergents, personal care
products, cosmetics, pharmaceuticals, cement, metal-working
fluids, agrochemicals, fuels, dyes, coatings and resins and gas
treatment. Morpholine is a neutralising amine used for
preventing carbonic acid corrosion in plant or refinery steam
condensate systems.
Diglycolamine
Agent amine
is used for removing carbon dioxide and hydrogen sulphide from
refinery and production gas streams. Huntsman currently makes
morpholine and Diglycolamine Agent amines at its plants in Port
Neches, Texas and Llanelli, Wales.
2010/1/12
Huntsman Announces
Chinese Polyols Joint Venture with Jurong Ningwu Chemical Company
The Polyurethanes
division of Huntsman Corporation announced today the creation of
a new, China-based, joint venture with Jurong Ningwu
Chemical Co. Ltd 句容市寧武化工有限公司,
to research, develop,
manufacture and sell base polyether polyol products.
The joint venture company
will be known as Jurong New Ningwu Chemical Co.
Ltd, and
will be located in Jurong City, in the south of Jiangsu province.
It will be run as a standalone operation, led by Mr. Ying Jun,
General Manager of the joint venture.
“We
are committed to the long-term development of our business in
China and the joint venture with Ningwu is the latest step in our
program to build capability in this dynamic growth market”, said Tony Hankins, President of
Huntsman’s Polyurethanes division. “We’re very excited to be partnering
with one of the major polyols producers in the country and look
forward to combining our unique talents to achieve sustained
success.”
江蘇省鎮江市の句容市
Jurong City Ningwu
Chemical Co. Ltd. is special petrochemical enterprise, which
is mainly focusing on production of polyether
polyols,
oil field demulsifies, high effect water management agents
and super asphalt for bridge. Established in 2001, the
company owns first class equipment, power of stead technical,
advanced proceeding of manufacture and perfect measure of
testing.
* Aromatic polyester
polyols
* Rigid Polyurethane polyether monomer
* Sucrose polyether series
* Sorbitol Polyether Series
* Polyether diamine series
* Toluene diamine polyether series
* Glycerol ether series
* Phthalic anhydride polyester polyol
* Coatings, adhesives, elastic
* Polyether polyol with high activity
* Polymer polyol
* Efficient water treatment agent
* Demulsifier oil fatty amines
* Resin oil demulsifier
* Fatty alcohol type of oil demulsifier
* Export Demulsifier
* Desalination agent
2010/1/23 Huntsman
Huntsman Subsidiaries to End Sales Into Iran
Huntsman Corporation
today announced that its indirect foreign subsidiaries that have
been selling products to third parties located in Iran will
discontinue doing so and will exit any contractual arrangements
there as expeditiously as legally possible. While such sales have
been done in full compliance with U.S. law, it was determined
that the small amount of business done there does not justify the
reputational risk currently associated with doing business with
entities located in Iran, due to the growing international
concern over the policies of the current regime there.
Total sales by Huntsman’s foreign subsidiaries to entities
located in Iran have historically represented only a minor
fraction of one percent of Huntsman’s global sales.
July 31, 2010
Huntsman to Purchase
Chemicals Business of Laffans Petrochemicals Ltd.
Huntsman Corporation today announced that the company has entered
into a definitive agreement to acquire the chemicals
business of Laffans Petrochemicals Ltd.
Located in Ankleshwar, India the Laffans chemicals business
manufactures amines and surfactants. The chemicals business has 130
employees and annual sales of approximately $45 million. The
acquisition is subject to certain terms and conditions and is
expected to occur in the first half of 2011. The Laffans
chemicals business will be integrated into the Performance
Products division and is expected to be immediately accretive to
earnings.
Commenting on the transaction, Daniele Ferrari, President of the
Performance Products Division, said, "In addition to the
recently announced expansion of our polyetheramine
facility in Singapore, the acquisition of this business
is strategically important as we look to meet the rapid growth in
demand for other amines within Asia. A stronger manufacturing
presence in India will enable us to better support our customers
and their growth specifically within the Indian economy. This
acquisition will bring total annual Huntsman Corporation sales in
India to approximately $260 million or 3% of total sales. The
Laffans chemical business is complementary to our existing
technology and product offering and introduces exciting potential
for additional product development."
Financial details of the transaction were not disclosed.
ーーー
Laffans
Petrochemicals Limited set up in 1994 to manufacture ethylene
oxide derivatives such as Ethoxylates, Glycol Ethers,
Acetates, Triethonal-amine, and Brake fluids is located in
Ankleshwar, Gujarat.The company entered into collaboration
with global leader chemicals for manufacturing of ethylene
oxide derivatives under huntsman brand and technology.
Laffans is the single largest buyer of Ethylene Oxide in
India. Its revenues are in excess of USD 50 million.
This
multipurpose unit is geared to produce Polyethylene Glycols
and EO condensates of Alkyl Phenols, Fatty Alcohols, Fatty
Acids and Natural Oils also manufacture Esters of stearates
& oleates, EO PO Copolymers, Ethanol Amines such as MEA,
DEA, TEA. The unit also produce APO free (Non Alkyl Phenol
i.e. NP/OP free) ethoxylates as per international
requirement. These are highly biodegradable, low foaming,
high performance wetting agent cum detergent totally stable
in hard water and mild to skin. This comprehensive range of
Ethoxylates is widely used in agrochemicals, textiles,
paints, lubricants, detergents, pharmaceuticals and personal
care products.
Plant capacity
(Installed)
Glycol ethers
25,000 TPA
Ethoxylates
30,000 TPA
Ethanol
Amines 10,000TPA
Propoxylates
- 5000 TPA
Acetates - 5000
TPA.
Theic トリス−ヒドロキシ−エチル−イソシアヌレート- 5000 TPA
2011/4/2 Huntsman
Huntsman Acquires
Chemicals Business of Laffans Petrochemicals Ltd.
Huntsman Corporation
today announced that it has completed its acquisition of Indian
chemical producer Laffans Petrochemicals Ltd., and has taken ownership of
the manufacturer’s 60kt ethylene
oxide derivatives
facility in Ankleshwar, Gujarat. The purpose-built plant
produces specialty intermediates for use in agrochemicals,
household and personal care products, oil and gas
applications and automotive lubricants and brake fluids.
Financial details were not disclosed.
Huntsman Corporation
2010 revenues were $9.2 billion. In 2010 Laffans had revenues
in excess of $50 million. News of the Laffans acquisition
follows another recent Asian announcement from Huntsman
Performance Products outlining a $70 million investment in a
capacity expansion program at its polyetheramine plant in
Singapore.
Commenting on the
acquisition, Peter R. Huntsman, President and Chief Executive
Officer of Huntsman Corporation, said “This acquisition is a
continuation of our strategy to build our Asian business. We
look forward to integrating this business and further
expanding our Indian business".
May 25, 2011
Huntsman and Yantai
Wanhua Polyurethanes Sign PO/MTBE License Agreement
Huntsman Corporation
today announced that it has signed a licence agreement with
Chinese chemicals manufacturer Yantai Wanhua Polyurethanes Co.,
Ltd 煙台万華ポリウレタン, for the production of Propylene
Oxide (PO) and Methyl Tertiary Butyl Ether (MTBE) - a co-product
of PO.The financial terms of the
arrangement were not disclosed.
Yantai Wanhua, a leading
Asian polyurethanes producer, plans to leverage the licence to
build a worldscale PO/ MTBE plant at its facility in Yantai,
Shandong province, with construction expected to commence later
this year and beneficial production due in late 2013.
Huntsman’s polyurethanes division has
worldscale production facilities in the U.S., the Netherlands and
China, including a 240/750 ktpa PO/ MTBE plant in
Port Neches, Texas
and is a global leader in PO technology.
Commenting on the
agreement, Peter R. Huntsman, President and Chief Executive
Officer of Huntsman Corporation, said “Huntsman is pleased with the
negotiations and the relationship that has been built between our
Company and Yantai Wanhua - one of China's finest manufacturing
companies.We anticipate this relationship
will extend into other business opportunities that will be
beneficial for both companies.We look forward to working with
Yantai Wanhua in building this PO/ MTBE facility."
Mr. Ding Jiansheng,
chairman of Yantai Wanhua Polyurethanes Co. Ltd, commented “This co-operation with Huntsman is
a win-win solution for both parties and for the polyurethane
industry. Huntsman is one of the leading PO technology holders
and definitely the right partner to work with to realize our
vision: to be a first-class, green chemical producer.With China's huge
chemical market potential and Wanhua's local expertise, the
PO/MTBE license will foster a true success in our Wanhua Yantai
portside integrated chemical complex.”
Editor’s Note: PO is used in the
production of polyether polyols for use in making polyurethane.MTBE is a gasoline
additive, used as an oxygenate and to raise the octane number.
About Yantai Wanhua:
Yantai Wanhua
Polyurethanes Co., Ltd. was founded on December 20, 1998 and is
the first listed shareholding enterprise following reorganization
in Shandong Province, China. In 2010, Yantai Wanhua achieved
sales revenue of $1.45billion (RMB 9.4billion). Yantai Wanhua's
business covers R&D, production and marketing of isocyanates,
aromatic polyamines and thermoplastic polyurethanes (TPUs). The
company currently hasthree MDI plants with a combined
capacity of 800,000 tons/year,with product quality and unit
consumption reaching global standards. For detailed information,
please visit the company's website at www.ytpu.com
The performance products division of US chemical producer Huntsman plans to add
250 million lb/year (about 113,000 tpy) of ethylene oxide
(EO) capacity at its manufacturing plant in Port Neches, Texas, the
company announced late Thursday.
The new capacity will be added to Huntsman’s existing 1
billion lb/year of annual capacity at the plant, the company said.
The expansion of EO capacity at Port Neches will leverage Huntsman’s integrated
EO derivatives production currently in place at the site to produce surfactants,
ethanolamines, specialty chemicals and ethylene glycol (EG).
“The expansion of our ethylene oxide capacity enables Huntsman to leverage the
favorable North American ethane cost position, which will benefit our
intermediate chemicals and has an attractive projected return on investment,”
said Stu Monteith, president of Huntsman Performance Products.
Janice Latz, vice president of operations for performance products, said the
company’s new EO capacity should help allay customer concerns about having
access to sufficient EO to support their growth.
“The Port Neches EO reactor will enable us to utilize currently untapped
derivative capacity within our assets and meet future needs to match our
customers’ growth,” she said.
Sept. 10, 2014 Huntsman
European Commission Approves Huntsman's
Acquisition of Rockwood's Performance Additives and Titanium Dioxide
Businesses
Huntsman Corporation announced today that
the European Commission has approved its previously announced acquisition of
the Performance Additives and Titanium Dioxide (TiO2) businesses of Rockwood
Holdings, Inc. The Commission approval is subject to the
divestiture of Huntsman’s business associated with a
product known as TR52 mainly sold into inks applications. This
divestiture represents approximately 30 kilotons of TiO2 with annual EBITDA
of approximately $5 million to $10 million and excludes any associated
manufacturing assets.
Huntsman has entered into a definitive
agreement to sell its TR52 business to Henan Billions Chemicals Co., Ltd.
Financial details of this agreement were not disclosed.
The transaction with Rockwood is expected to
close in the coming weeks, pending the European Commission’s approval of the
sale of the TR52 business to Henan.
---
Sept. 17, 2013 Huntsman
Huntsman to Acquire Rockwood’s Performance
Additives and Titanium Dioxide Businesses
• Purchase price of $1.1 billion in cash plus the assumption of unfunded pension
liabilities
• Immediately accretive to Huntsman earnings per share
• $0.60 annual per share accretion assuming 2014 estimated results and full
impact of $130 million expected cost savings
• Public offering of the Huntsman and Rockwood combined Pigments businesses
within two years of close
Huntsman Corporation and Rockwood Holdings, Inc. announced today that they have
entered into a definitive agreement whereby Huntsman will acquire
Rockwood’s Performance Additives and Titanium Dioxide
(TiO2) businesses. Under the terms of the agreement Huntsman will pay
approximately $1.1 billion in cash and assume unfunded
pension liabilities estimated at $225 million as of June 30, 2013.
Peter R. Huntsman, President and CEO of Huntsman Corporation, commented:
"This acquisition provides a unique opportunity to unlock value within our
Pigments business and builds on the strong improvements we have made to its
competitiveness. With this combination we will be better positioned to serve
customers through a broader product range including color pigments, functional
additives and specialty TiO2 pigments. We will become the second largest global
producer of TiO2 and inorganic color pigments.
The transaction announced today is the next step in our long term value creation
strategy for our Pigments business. We anticipate TiO2 demand will continue to
recover in the coming quarters, and during this time we will be focused on
strengthening our world class Pigments business and capturing approximately $130
million in expected annual cost savings, to be fully achieved by the end of
2015. We plan to further unlock value through a public offering of our new
combined Pigments business, which we expect to pursue within two years of
completing this acquisition.
In addition to creating a $3 billion Pigments leader, we believe this public
offering will allow greater investor focus and appreciation for our
differentiated businesses. These remaining divisions continue to enjoy record
financial performance and global growth. We are well on our way to capturing the
previously announced $220 million in annual savings through restructuring in our
existing business and we have a number of capital projects underway that will
increase our future earnings potential. Reducing our financial leverage remains
a priority and we expect to return to our debt/EBITDA target ratio of 2 to 2.5
times by 2015."
The cash purchase price of $1.1 billion represents a multiple of 5.5 times
estimated 2014 adjusted EBITDA of $200 million, or 3.3 times including $130
million in expected annual cost savings. The transaction will be immediately
accretive to earnings per share, and is expected to add $0.60 annual per share
accretion assuming 2014 estimated results and full impact of expected cost
savings.
Rockwood’s Performance Additives and TiO2 business includes the manufacture and
supply of sulphate process TiO2, synthetic iron-oxide and
other organic pigments, timber treatment products and specialty automotive
materials. Applications for these products are used in coatings,
construction, concrete, plastics, papers, inks, food, cosmetics,
pharmaceuticals, fibers and films.
Financing commitments are in place to fund the acquisition. The transaction
remains subject to regulatory approvals and customary closing conditions and is
expected to close in the first half of 2014.
BofA Merrill Lynch served as financial advisor and Vinson & Elkins as legal
advisor.
2014/7/1
Huntsman, BASF, Shanghai Hua Yi, Shanghai Chlor-Alkali Chemical Co. Ltd. and
SINOPEC Group Assets Management Corporation Plan New MDI Plant in Shanghai
Capacity of 240,000 metric tons crude MDI per year to support growing demand for
polyurethane products in Asia Pacific
Start-up planned for 2017
Huntsman Corporation, BASF, Shanghai Hua Yi (Group) Company, Shanghai Chlor-Alkali
Chemical Co. Ltd. and SINOPEC Group Assets Management Corporation plan to build
a new plant to produce 240,000 metric tons of crude MDI
(diphenylmethane diisocyanate) per year at Shanghai
Lianheng Isocyanate Co. Ltd. (SLIC) in Caojing, China. With the new
plant, the crude MDI capacity at this site will be doubled
to 480,000 metric tons per year. In addition, the partners plan to build
an HCl (hydrogen chloride) recycling plant for the production of chlorine, a
precursor for MDI. The facility is expected to start up 2017.
MDI is an important precursor in the
manufacture of polyurethanes – versatile polymers that are used in industries
like construction, automotive, appliance, and footwear.
“The new crude MDI plant will further strengthen our ability to provide our
customers in the region with high quality, locally manufactured products. It
signals our confidence in the long term prosperity of what is now the single
largest market in the world as well as our commitment to serve the growing needs
of our customers,” said Peter Huntsman, President and Chief Executive Officer of
Huntsman.
The new plant, at the Shanghai Chemical Industry Park (SCIP) in Caojing, will be
adjacent to the existing integrated isocyanates complex. This will enable the
utilization and full access to raw materials and energy.
Shanghai Lianheng Isocyanate Co. Ltd. (SLIC) has a production capacity of
240,000 metric tons of crude MDI per year and includes manufacturing facilities
for the precursors aniline and nitrobenzene built by Huntsman, BASF, Shanghai
Hua Y i (Group) Company, Shanghai Chlor-Alkali Chemical Co. Ltd. and SINOPEC
Shanghai Gaoqiao Company. Commercial production started in 2006.
March 4, 2015
Huntsman Takes Further Action to Restructure
Global Pigments and Additives Business
Initial Changes to Color Pigments Business to
Contribute $20 Million in Synergies
Huntsman Corporation today announced its plan to restructure its
Color Pigments business, another step in its previously announced plan to
significantly restructure its global Pigments and Additives business. The
restructuring of Color Pigments includes an expected headcount reduction of 120
positions and will deliver $20 million by mid-2016 toward the total synergies
expected of the global Pigments and Additives restructuring plan announced in
December 2014.
The initial phase of restructuring will include site closures, cost reduction
initiatives and a move to centralized shared services, in addition to investment
in customer focused R&D to secure future growth. Manufacturing sites to be
closed by year-end 2015, all of which are leased, include Cartersville, Georgia;
East St. Louis, Illinois; and King of Prussia, Pennsylvania in the U.S., in
addition to Hainhausen, Germany. Products produced by these facilities will be
supplied by other Huntsman facilities including our soon to be completed
facility in Augusta, Georgia.
Peter R. Huntsman, President and CEO of Huntsman Corporation, commented:
“Today’s announcement underscores our commitment to restructure and remove cost
from our newly acquired assets and operations as quickly and efficiently as
possible. I am pleased to see that we are well on track to deliver more than
$140 million in total synergies, with $60 million of that to be achieved in
2015. In addition to these savings, we have announced a plan to close the black
end of our TiO2 plant in Calais, France that will generate $35 million of annual
savings.”
Jan Buberl, Vice President of Sales and Marketing of Huntsman’s Color Pigments
and Timber Treatment business, added:
“This initial step in restructuring our Color Pigments business will enable us
to be more competitive, respond more quickly to market conditions and better
serve our global customer base. We anticipate we can further optimize this
business by identifying additional synergies over time.”
July 6, 2016
Huntsman Announces Plan to Close its South
African Titanium Dioxide (TiO2) Manufacturing Facility
Huntsman Corporation announced today a plan to close its
25,000 metric ton TiO2 manufacturing facility based in
Umbogintwini, South Africa during the fourth
quarter 2016. Closure of the facility will have a cash pay-back of less than two
years. Cost savings from this closure are in addition to the approximately $200
million previously announced.
Employing approximately 140 Associates, the Umbogintwini plant is the smallest
and oldest TiO2 manufacturing plant in the Pigments and Additives division.
Under the proposed plan, production at the plant will end during the fourth
quarter 2016 after which Huntsman will serve its customers in the region with
existing capacity from its European TiO2 facilities.
Simon Turner, President of Huntsman Pigments and Additives division said: “Our
margins remain well below historical norms despite some recent recovery from
trough conditions. It is critical that we continue our successful cost reduction
and synergy program to combat such conditions. We have sufficient capacity
across our production network to allow us to close our smallest facility, still
meet our customers’ needs and improve our overall competitiveness. We appreciate
the support of our associates at the Umbogintwini facility and we will work
closely with them and our representative groups to ensure that we manage this
difficult situation with due care and respect.”
Peter R. Huntsman, President and CEO of Huntsman Corporation commented: “This
closure increases the competitive positioning of our Pigments and Additives
business and is an important step in the process as we work towards a
separation. The separation of our Pigments and Additives business will come
through either a spin to our shareholders or other strategic transacti on. We
continue to diligently work towards this objective."
July 27, 2016
Huntsman plans to spin off its pigments
business
The chief executive of Huntsman Corp. said Wednesday that The Woodlands, TX
company plans to spin off its specialty chemical
business - rather than sell it - and create a new publicly traded company by
early next year.
After debating for many months which route to take, CEO Peter Huntsman said now
that the struggling pigments and additives business is becoming profitable again
- "back in the black" - his company can gain more value by spinning off the unit
and selling shares than by selling it outright. The new company would
focus specifically on titanium dioxide chemical, called
TiO2, which is used as a pigment for everything from food coloring and
paints to coatings and sunscreen.
"A spin allows us to have a process that we can control," Huntsman said, noting
that shareholders should benefit. "This is something that has greater certainty
behind it."
Huntsman has sought to unload, or at least distance itself, from the titanium
dioxide business because its poor performance has weighed on Huntsman's stock
price.
Hassan Ahmed, a chemical industry analyst of New York-based Alembic Global
Advisors, said spinning off the unit could prove wise because the titanium
dioxide business is cyclical and makes investors wary of Huntsman. In addition,
the new company might be attractive to investors now because the pigments
industry is out of the cyclical trough, he said.
"Giving a timeline - rather than some pie-in-the-sky thing - is better than
expected," Ahmed said of the spinoff.
Last year was termed a transition year for Huntsman after the
2014 purchase of $1 billion in plants and other assets from Rockwood Holdings,
a chemical company owned by Albemarle Corp. of Charlotte, N.C. Huntsman's
biggest financial drag has been its titanium dioxide plants, some of which were
purchased from Rockwood. Huntsman is in the process of closing its smallest
titanium dioxide plant, which is in South Africa.
Sept. 17, 2013 Huntsman
Huntsman to Acquire Rockwood’s Performance
Additives and Titanium Dioxide Businesses
• Purchase price of $1.1 billion in cash plus the assumption of unfunded
pension liabilities
• Immediately accretive to Huntsman earnings per share
• $0.60 annual per share accretion assuming 2014 estimated results and full
impact of $130 million expected cost savings
• Public offering of the Huntsman and Rockwood combined Pigments businesses
within two years of close
Huntsman Corporation and Rockwood Holdings, Inc. announced today that they
have entered into a definitive agreement whereby Huntsman will acquire
Rockwood’s Performance Additives and Titanium Dioxide
(TiO2) businesses. Under the terms of the agreement Huntsman will pay
approximately $1.1 billion in cash and assume unfunded
pension liabilities estimated at $225 million as of June 30, 2013.
Sept. 10, 2014 Huntsman
European Commission Approves
Huntsman's Acquisition of Rockwood's Performance Additives and Titanium
Dioxide Businesses
Huntsman Corporation announced today
that the European Commission has approved its previously announced
acquisition of the Performance Additives and Titanium Dioxide (TiO2)
businesses of Rockwood Holdings, Inc. The Commission approval is subject
to the divestiture of Huntsman’s business
associated with a product known as TR52 mainly sold into inks
applications. This divestiture represents approximately 30 kilotons of
TiO2 with annual EBITDA of approximately $5 million to $10 million and
excludes any associated manufacturing assets.
Huntsman has entered into a
definitive agreement to sell its TR52 business to Henan Billions
Chemicals Co., Ltd. Financial details of this agreement were not
disclosed.
The transaction with Rockwood is expected
to close in the coming weeks, pending the European Commission’s approval of
the sale of the TR52 business to Henan.
The company began eliminating at least 900
jobs last year, most of them at three titanium dioxide manufacturing plants in
Germany and Finland.
Huntsman, which employs more than 1,000 people in the Houston area, has dual
headquarters in Texas and Utah, which is the seat of the Huntsman family dynasty
in Utah. Peter Huntsman's brother, Jon, is a former Utah governor and GOP
presidential candidate.
Huntsman Corp. reported that its profit for the second quarter tripled from the
same period a year earlier, due in part to cost cutting. Profit rose to $87
million from $29 million in 2015, even though the specialty chemical company's
revenue fell to $2.5 billion from $2.7 billion last year.
Despite the profit, Huntsman's net earnings are below its historic norms.
Huntsman's stock fell Wednesd
October 28, 2016
Huntsman to spin off specialty chemicals business
Huntsman Corp., a chemical maker based in The Woodlands, said Friday it has
started the process to spin off its specialty chemical
business and create a new publicly traded company.
The company, which would make pigments, additives and textile effects, would
begin trading on the New York Stock Exchange within the first half of 2017,
Huntsman said.
The new company would focus largely on titanium dioxide
chemical, called TiO2, which is used as a pigment for everything from
food coloring and paints to coatings and sunscreen. The business is more
cyclical than Huntsman's other divisions and prone to more financial peaks and
valleys.
Huntsman opted to spin off a new company rather than sell certain business
units.
"TiO2 prices are improving and with additional increases expected in the future,
the timing of our spinoff should be well positioned," Huntsman Chief Executive
Peter Huntsman said Friday, noting that the planned company doesn't have a name
yet.
For the third quarter, Huntsman posted a small $55 million net profit on Friday,
unchanged from the same period last year.
Huntsman's revenue fell from $2.64 billion to $2.36 billion, but that was offset
by cost cutting. Huntsman increased its free cash flow for the quarter and, as a
result, paid off $200 million in existing debt.
Dec. 30, 2016
Huntsman Completes Sale of European Surfactants Business; Enables $260 Million
Early Repayment of Debt
Huntsman Corporation announced today that it
has completed the sale of its European surfactants
business to Innospec Inc. for an
enterprise value of $225 million. This business represented approximately
$24 million of EBITDA in 2015. Huntsman intends to make a $260 million early
repayment of debt using proceeds from the sale and existing cash. This debt
repayment is in addition to the recent debt reductions of $100 million in
September 2016 and $100 million in July 2016.
Huntsman remains committed to its global
surfactants business, including in the United States and Australia, where
its differentiated surfactants businesses are backward integrated into
essential feedstocks. Huntsman retained certain core products strategic to
its global agrochemicals, lubes and other businesses and entered into supply
and long-term tolling arrangements with Innospec to allow Huntsman to
continue marketing some of these products.
------
Innospec is a global specialty chemicals
company focused on bringing innovative new technologies to market combined
with a fast and responsive service.
Huntsman and Clariant to
Combine in Merger of Equals
Merger of equals to create a
leading global specialty chemical company with approximately $20 billion
enterprise value at announcement
More than $3.5 billion value
creation through annual cost synergies in excess of $400 million
Enhanced returns from
improved growth profile in highly attractive end markets and key geographies
such as the United States and China
Opportunities for stronger
joint innovation platforms and shared knowledge in sustainability
Stronger balance sheet and
cash flow generation; plan to continue Clariant’s attractive dividend policy
Transaction targeted to
close by year end 2017
Previously announced IPO of
Huntsman’s Pigments and Additives business (Venator) to continue as planned
in summer 2017
Huntsman Corporation and
Clariant) today announced that their Boards of Directors unanimously approved a
definitive agreement to combine in a merger of equals through an all-stock
transaction.
The merged company will be named
HuntsmanClariant. On a pro forma 2016 basis , the combination of both companies
will create a leading global specialty chemical company with sales of
approximately $13.2 billion, an adjusted EBITDA of $2.3 billion and a combined
enterprise value of approximately $20 billion at announcement.
The combined entity will benefit
from each other’s strengths. It will have a significantly improved growth
profile in highly attractive end markets and geographies. HuntsmanClariant will
leverage shared knowledge in sustainability and boast a much stronger joint
innovation platform. This will enable the development of new products in order
to deliver superior returns and drive shareholder value.
CEO Comments
“This is the perfect deal at the
right time. Clariant and Huntsman are joining forces to gain much broader global
reach, create more sustained innovation power and achieve new growth
opportunities,” said Hariolf Kottmann, CEO of Clariant. “This is in the best
interest of all of our stakeholders. Peter Huntsman and I share the same
strategic vision and I look forward to working with him.”
Peter R. Huntsman, President and
CEO of Huntsman, commented: “I could not be more enthusiastic about this merger
and look forward to working closely with Hariolf Kottmann, a man I have admired
and trusted for the past decade. We also look forward to a close association
with his immensely talented colleagues around the world. Together, we will
create a global leader in specialty chemicals with a combined balance sheet
providing substantial financial strength and flexibility.”
Huntsman shareholders
receive 1.2196 shares in HuntsmanClariant for each Huntsman share (each
existing Clariant share will remain outstanding as a share in
HuntsmanClariant)
Board of Directors with
equal representation from Clariant and Huntsman
Global Headquarters in
Pratteln, Switzerland, Operational Headquarters in The Woodlands, Texas
Dual stock exchange direct
listing on the SIX Swiss Exchange and the New York Stock Exchange
Value Creation
The new company will accelerate
value creation for shareholders through a more robust combination of technology,
products and talent. The combined company expects to realize more than $3.5
billion of value creation from approximately $400 million in annual cost
synergies. The full synergy run-rate will be achieved within two years of
closing. These synergies will be realized by reducing operational costs and
improving procurement. The targeted synergies represent roughly 3 percent of
total combined 2016 revenue with one-time costs up to $500 million. There will
also be additional cash-tax savings.
Corporate Governance
The combined company,
incorporated in Switzerland, will be governed by a Board of Directors with equal
representation from Clariant and Huntsman and will follow Swiss Corporate
Governance standards. Hariolf Kottmann, current Clariant CEO, shall become
Chairman of the Board of HuntsmanClariant. Peter Huntsman, current Huntsman
President and CEO, will become CEO of HuntsmanClariant. Jon Huntsman, founder
and Chairman of Huntsman, shall become Chairman Emeritus and board member of
HuntsmanClariant. The merger enjoys strong commitment from both Clariant and
Huntsman family shareholders. The company will be listed on the SIX Swiss
Exchange and the New York Stock Exchange. HuntsmanClariant will use IFRS, and
beginning in Q1 2018 will report in USD and will start filing 10Qs and 10Ks
consistent with SEC requirements.
Timing
The transaction is targeted to
close by year end 2017, subject to Clariant and Huntsman shareholder approvals,
regulatory approvals and other customary closing conditions. Clariant and
Huntsman are confident that the required regulatory approvals can be obtained in
a timely manner.
Huntsman Announces
Acquisition of Remaining 50% Interest in Sasol-Huntsman Joint
Venture
Huntsman
Corporation announced today that it has signed a
definitive agreement with Sasol to acquire the
50% interest that Huntsman does not own in the
Sasol-Huntsman maleic
anhydride joint venture. The joint
venture owns a manufacturing facility in Moers,
Germany with
capacity to produce 230
million pounds of maleic anhydride.
Huntsman will pay Sasol
$92.5 million, adjusted for debt and
other agreed upon terms, funded from available
liquidity. No other terms of the transaction
were disclosed. Huntsman and Sasol currently
anticipate the closing of the transaction to
occur in the fourth quarter of 2019, subject to
regulatory approvals and customary closing
conditions.
ーーー
01 April 2008
Huntsman Joint Venture To Pursue Major
Maleic Anhydride Expansion In Germany
Sasol-Huntsman GmbH & Co. KG, a
50/50 joint venture between affiliates of
Huntsman Corporation and Sasol Limited located in
Moers, Germany, today announced plans to pursue the expansion of
its maleic anhydride manufacturing capacity by
45,000 mt. The new capacity, which is expected to be on-line in
first quarter 2011, will increase Sasol-Huntsman´s production capacity
by 75%, to 105,000 mt. The expansion will
be funded by the joint venture’s internal cash flow and its non-recourse
financing.
The expansion
will be achieved via construction of a second world scale 45 kt reactor
and purification section on the same site as the existing plant.
However, the new reactor and purification section will be operated
independently from the existing plant to ensure continuous product flow
without production interruption, even during scheduled T & I shutdowns
and catalyst re-packs.
Basic engineering and site
preparation are complete. The reactor and selected other major equipment
are scheduled to be ordered in early May, and the EPCM contract to be
awarded in June.
The expanded plant will make
use of the infrastructure on the Sasol Solvents
Moers site, providing synergies for the Sasol-Huntsman joint
venture as well as for Sasol.
The new plant’s design is similar to
Huntsman’s 45 kt plant under construction in Geismar (USA), which is
expected to be operational in late 2008.
ーーー
September 30, 2019
Huntsman Completes the Purchase of the
Remaining 50% Interest in the Sasol-Huntsman Joint Venture
Huntsman Corporation announced today that
it has completed the previously announced acquisition of the remaining 50%
interest in the Sasol-Huntsman maleic anhydride joint venture from Sasol.
Huntsman now owns 100% of the entity with manufacturing assets located in
Moers, Germany, and the capacity to produce 230
million pounds annually of maleic anhydride. Huntsman paid Sasol
approximately $100 million, which includes
acquired cash net of any debt and is subject to customary post-closing
adjustments.
Peter Huntsman, Chairman, President and
CEO, commented:
"Closing on the acquisition of the
remaining interest in our maleic German joint venture provides us with the
flexibility to fully integrate our European business into our worldwide
footprint, thereby better servicing our global customer base in key markets
such as construction and coatings. This fits well into our core strategy to
expand our portfolio of businesses with higher, more stable margins and
strong free cash flow.”
Monte Edlund, President of Huntsman’s
Performance Products division, added:
“We are very pleased and excited to
assume full control of this excellent business and asset. By fully
integrating the Moers, Germany, plant with our existing maleic anhydride
business, we will be able to improve our service and offering into key
markets such as resins in construction, watercraft, transportation vehicles,
and sporting goods, as well as into applications such as food acidulants,
oilfield chemicals, and engine oil additives.”
Aug. 7, 2019
Huntsman Agrees to Sell its Chemical
Intermediates and Surfactants Businesses to Indorama Ventures for $2.1
Billion
Huntsman Corporation announced today it has
entered into a definitive agreement to sell its chemical intermediates
businesses, which includes PO/MTBE, and its
surfactants businesses to Indorama Ventures in a transaction valued
at $2.076 billion, comprising a cash purchase price of $2.0 billion plus the
transfer of up to approximately $76 million in net underfunded pension and
other post-employment benefit liabilities.
The $2.076 billion transaction value
represents an LTM adjusted EBITDA multiple of approximately 8.0 times, which
includes retained SG&A costs of about $30 million, a portion of which
Huntsman expects to eliminate over time.
Under the terms of the agreement,
Indorama Ventures would acquire Huntsman’s manufacturing facilities located
in Port Neches, Texas; Dayton, Texas; Chocolate Bayou,
Texas; Ankleshwar, India; and Botany, Australia. The transaction is
subject to regulatory approvals and other customary closing conditions and
is expected to close near year-end.
Peter Huntsman, Chairman, President and CEO commented:
“This transaction further transforms
Huntsman’s balance sheet and future. It accelerates our ability to expand
more in areas both downstream and complementary to our portfolio. This is
another milestone in our stated strategy to focus more on our downstream and
specialty businesses where we will generate more stable margins and
consistent, strong free cash flow. We are committed to retaining our strong
investment grade balance sheet, repurchasing our shares, investing in
organic research and select capacity expansions and acquiring strategic
assets that are accretive to our earnings and create shareholder value.
“For Indorama Ventures, they will be
acquiring a strong EO/PO derivatives business with a very exper ienced
workforce and management team. This is also a transformational opportunity
for Indorama Ventures that provides them hundreds of product grades and
thousands of customers. Huntsman looks forward to continuing to work with
Indorama Ventures as a customer and manufacturing partner through long-term
commercial arrangements, including propylene oxide supply.
“Huntsman intends to accelerate share
repurchases under its existing $1 billion multi-year authorization after the
close of this transaction.”
Aloke Lohia, Group CEO of Indorama
Ventures, commented:
“This acquisition is a momentous
propellant in our journey towards our stated goal of being a global,
diversified chemicals company with multiple, and related earnings streams.”
BofA Merrill Lynch served as Huntsman’s
financial advisor and Kirkland & Ellis is acting as its legal advisor.
Huntsman Announces Agreement to Sell Textile
Effects Division
Huntsman Corporation today announced it has
entered into a definitive agreement to sell its
Textile Effects division to Archroma, a
portfolio company of SK Capital Partners. The
total enterprise value of the transaction is approximately $718 million,
which includes the assumption of approximately $125 million in net
underfunded pension liabilities as of December 31, 2021. The acquisition is
being partially funded with preferred equity, of which Huntsman is taking up
to $80 million, an amount SK Capital Partners will seek to syndicate prior
to the transaction closing.
Over the last twelve months ending June 30, 2022, the Textile Effects
division reported sales of $772 million and adjusted EBITDA of $94 million.
Huntsman anticipates cash taxes on the transaction of approximately $50
million. Huntsman intends to report Textile Effects as discontinued
operations beginning in the third quarter of 2022. The transaction is
subject to regulatory approvals and other customary closing conditions and
is expected to close in the first half of 2023.
Peter Huntsman, Chairman, President, and
CEO commented:
"Over the past seven months, we have
conducted a comprehensive strategic review of our Textile Effects division,
including detailed discussions with a wide range of relevant parties. After
evaluating several different options and thoroughly reviewing prospective
offers for the business, our Board of Directors decided that SK Capital
would be a better owner of the business over the long-term than Huntsman and
that the value they offered was in the best interests of our shareholders.
After closing, Textile Effects will combine with SK Capital's Archroma
business to create a world leader in textile chemicals and dyes, with a
leadership in sustainability and innovation.
"We expect the cash proceeds from this
divestiture to be deployed in-line with our current balanced capital
allocation program which includes strategic investments and acquisitions to
further strengthen our core businesses as well as returning cash to
shareholders through both our dividend and share repurchase program."
BofA Securities is serving as Huntsman's
financial advisor and Kirkland & Ellis LLP is acting as its legal advisor.
