Huntsman Corporation (NYSE:HUN) and Wilmar International Limited (SGX:F34) today announced..
THE WOODLANDS, TX/ SINGAPORE – Huntsman Corporation (NYSE:HUN) and Wilmar International Limited (SGX:F34) today announced that Wilmar’s wholly-owned subsidiary, Wilmar Europe Holdings B.V. has agreed to purchase Huntsman’s European commodity surfactants business. Completion remains subject to customary closing conditions, including regulatory procedures in France. Financial details of the agreement were not disclosed.
Under the terms of agreement, Huntsman plans to sell to Wilmar its ethoxylation facility in Lavera, France. In addition, Wilmar will enter into a multi-year arrangement to purchase sulphated surfactant products from Huntsman’s facilities in St. Mihiel, France and Castiglione delle Stiviere, Italy.
Separately, Huntsman has also announced its intention to cease production by October 2014 at its Patrica, Italy commodity surfactants facility.
Last October, Huntsman announced plans to improve its annual EBITDA by $20 million by exiting a number of commodity surfactant product lines in Europe and to focus on developing and growing the remaining differentiated surfactants businesses. The closure of the Patrica facility and the implementation of other restructuring activities, including the re-focus on differentiated surfactants following the sale to Wilmar, will result in a smaller, more profitable surfactants business for Huntsman in Europe going forward.
Peter Huntsman, President and CEO of Huntsman Corporation, said: “This restructuring and portfolio repositioning will benefit our Performance Products division in Europe and preserve jobs that otherwise would have been lost. The sale and offtake agreement with Wilmar will further cement the already strong relationship between our two companies. We plan to work closely together with Wilmar to ensure a smooth and seamless transition for customers and other stakeholders.”
Mr Kuok Khoon Hong, Chairman and CEO of Wilmar Inte
rnational Limited, said: “We are very pleased with this agreement with Huntsman, which enables Wilmar to broaden its existing footprint in Europe and extend its integrated chain to better serve customers in all geographies with responsible and quality products. The ongoing and successful relationship between our two companies will serve us both very well in our respective growth strategies.”
Huntsman Corporation is a publicly traded global manufacturer and marketer of differentiated chemicals with 2013 revenues of over $11 billion. Our chemical products number in the thousands and are sold worldwide to manufacturers serving a broad and diverse range of consumer and industrial end markets. We operate more than 80 manufacturing and R&D facilities in 30 countries and employ approximately 12,000 associates within our 5 distinct business divisions. 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 condi
tions. 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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