Houston, TX--Huntsman Corporation (NYSE: HUN) today announced the sale of its toluene di-isocyanate (TDI) business to BASF, effective July 6, 2005.
The sale involves the transfer to BASF of Huntsman’s TDI customer list and sales contracts. Huntsman’s Geismar, Louisiana TDI manufacturing plant will not be transferred pursuant to the transaction but will be closed.
Commenting on the sale, Huntsman’s polyurethanes U.S. Vice President, Greg Geaman, said, "This sale represents a win-win-win situation for our TDI customers, Huntsman and BASF. We are focused on our MDI (diphenylmethane diisocyanate) business, with TDI representing approximately 2% of our total polyurethanes segment revenues in 2004. The sale now leaves us free to focus on MDI growth opportunities, while our customers will continue to enjoy ongoing service and support for their TDI needs from BASF.”
Huntsman expects to incur aggregate charges of approximately $39 million in connection with the sale, including a $27 million non-cash write-down of fixed assets and $12 million in cash charges, which include a $10 million net contract termination charge. Huntsman expects to record $37 million of the aggregate charges in the second quarter of 2005, with the remaining $2 million to be recorded by the second quarter of 2006.
Huntsman is a global manufacturer and marketer of commodity and differentiated chemicals. Its operating companies manufacture basic products for a variety of global industries including chemicals, plastics, automotive, aviation, footwear, paints and coatings, construction, technology, agriculture, health care, textiles, detergent, personal care, furniture, appliances and packaging. Originally known for pioneering innovations in packaging, and later, rapid and integrated growth in petrochemicals, Huntsman today has revenues of $11.5 billion, 11,300 employees and 62 operations in 22 countries.
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 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. Accordingly, there can be no assurance 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 securities and other applicable laws.