Billingham, UK – The Pigments division of Huntsman Corporation (NYSE:HUN) announced today that it will implement energy related surcharges on TIOXIDE® titanium dioxide pigments, effective from 23rd June 2008.
The announcement follows on from the Huntsman Corporation announcement of 29th May 2008 regarding the recent unprecedented escalation of energy related costs impacting the entire chemical industry.
Simon Turner, Senior Vice President of Huntsman Pigments, said that Huntsman Pigments’ energy bill had increased so substantially that the division’s existing programme to aggressively reduce costs was simply insufficient to absorb the magnitude of this increase.
“The business urgently needs a new pricing mechanism to recover ground lost to these unprecedented moves in the cost of the energy, raw materials and services required to operate”, he said.
The surcharge will be applied and billed out starting on June 23rd for all regions and will initially be set at
• €50/te in Europe
• USD $75/te for all sales into Latin America, Middle East, Africa, Asia Pacific and all sales of imported product into North America
This surcharge is in addition to previously announced price increases required to ensure long term returns necessary to justify ongoing reinvestment in the business.
Huntsman Pigments sales representatives will provide further information to individual customers on this key issue, as well as specific details about announcements concerning regional pricing to mitigate the increased costs of raw materials and services.
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, detergen
t, 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 13,000 employees and operates from multiple locations worldwide. The Company had 2007 revenues of approximately $10 billion. For more information about Huntsman, please visit the company’s website at www.huntsman.com.
About Huntsman Pigments Division
Huntsman Pigments Division specialises in the manufacture and marketing of TIOXIDE® titanium dioxide pigments, a brand with an exceptional reputation for excellence and consistency, trusted and recognised world-wide. TIOXIDE® titanium dioxide pigments add brightness, whiteness, opacity and durability to thousands of consumer products; from decorative paints used in the home to industrial coatings on ocean liners, cars and steel-framed buildings; from nappies and toothpaste to printed circuit boards and computer housing; from sportswear and sporting equipment to boat hulls. Huntsman Pigments Division is an international business employing 2,000 people in facilities in seven countries with a combined total manufacturing capacity of approximately 550,000 tonnes of TiO2 pigment a year.
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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