Huntsman Acquires Chemicals Business of Laffans Petrochemicals Ltd.
THE WOODLANDS, TX – Huntsman Corporation (NYSE: HUN) 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.
With immediate effect the chemicals business of Laffans becomes an integral part of Huntsman Performance Products – giving the division its first dedicated production plant in India.
Huntsman Corporation 2010 revenues were $9.2 billion of which approximately three per cent were in India.
The deal comes less than two years after Huntsman signed a collaboration agreement with Laffans to share know-how, expertise and resources in the development and production of specialty chemicals, including glycol ethers, nonionic surfactants and amines.
Stu Monteith, President of Huntsman’s Performance Products division, said: “Acquiring Laffans’ chemicals business is a natural extension of our cooperation with the company. For the last two years Laffans has, in effect, been operating as an outsourced production arm of the Performance Products division in India. This interim arrangement was always a potential prelude to a formal financial transaction.”
Huntsman has a long history of strategic acquisitions that have helped to develop the company’s core strengths in established and emerging territories. Steve Stilliard, Vice President Asia-Pacific for Performance Products said: “Integrating the Laffans chemicals team into the Performance Products division will help the business meet demand for specialty intermediates as interest intensifies across Asia.” He added: “It will increase the level of support the company can offer exi
sting customers and open up new and exciting product development opportunities with global corporations looking to grow their manufacturing footprint across the Indian sub-continent.”
Currently around 150 people work at the Laffans plant in Ankleshwar, Gujarat. Some twenty people employed at a dedicated commercial office in Mumbai and regional sales sites in Ahmedabad, Kolkatta and New Delhi, will also join Huntsman.
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.
Huntsman is a global manufacturer and marketer of differentiated chemicals. Its operating companies manufacture products for a variety of global industries, including chemicals, plastics, automotive, aviation, textiles, footwear, paints and coatings, construction, technology, agriculture, health care, detergent, personal care, furniture, appliances and packaging. Originally known for pioneering innovations in packaging and, later, for rapid and integrated growth in petrochemicals, Huntsman today has 12,000 employees and operates from multiple locations worldwide. The Company had 2010 revenues of over $9 billion. For more information about Huntsman, please visit the company’s website at www.huntsman.com.
Forward Looking Statements:
Statements in this release that are not historical are forward-looking statements. These statements are based on management’s current beliefs and expectations. The forward-looking statements in this release are subject to uncertainty and changes in circumstances and involve risks and uncertainties that may affect the company’s operations, markets, products, services, prices and other factors as discussed in
the Huntsman companies’ filings with the U.S. Securities and Exchange Commission. Significant risks and uncertainties may relate to, but are not limited to, financial, economic, competitive, environmental, political, legal, regulatory and technological factors. In addition, the completion of any transactions described in this release is subject to a number of uncertainties and closing will be subject to approvals and other customary conditions. Accordingly, there can be no assurance that such transactions will be completed or that the company’s expectations will be realized. The company assumes no obligation to provide revisions to any forward-looking statements should circumstances change, except as otherwise required by applicable laws.
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