Huntsman Invests $135 Million in US and European MDI Manufacturing Plants
THE WOODLANDS, Texas, March 21, 2013 /PRNewswire/ -- Huntsman Corporation (NYSE: HUN) today announced a combined investment of $135 million at two of its worldscale methylene diphenyl diisocyanate (MDI) manufacturing facilities: increasing capacity at its Geismar, USA site and upgrading its downstream specialties production capability at its Rotterdam, the Netherlands site.
The Geismar capacity will be increased by 50ktes to 500ktes using improved process technology developed by Huntsman. The expansion will enable Huntsman to support the growth of its key customers and leverages the significant advantages of the Geismar site, with its access to US shale gas, strong logistics base and excellent integration. The new capacity is expected to come on-stream in 2014 and will further consolidate Huntsman's position as the leading MDI producer in the Americas region.
At its Rotterdam facility, Huntsman is commissioning a new state-of-the-art MDI splitter and downstream specialties manufacturing unit which will enable Huntsman to serve customers with a full range of next-generation, differentiated polyurethane products for automotive, adhesives, coatings and other applications. The unit is designed to handle globally sourced MDI precursor and will be operational by the end of March.
Anthony P. Hankins, President of Huntsman Polyurethanes, said: "The Geismar investment enables us to strengthen our upstream cost leadership position, while the Rotterdam investment gives us greater flexibility to provide downstream, customized products. The benefits of US shale gas have significantly improved the economics of investing in US facilities and Huntsman has a number of other investments planned which will take advantage of lower cost natural gas.
In making these investments, Huntsman has benefited from the support of the Louisiana Economic Development and Ascension Parish Economic Development in the US, and the national government in The Netherlands. We thank them for their cooperation and support."
In addition to its Geismar and Rotterdam sites, Huntsman Polyurethanes operates a third worldscale MDI facility in Caojing, Shanghai.
Huntsman is a global manufacturer and marketer of differentiated chemicals. Our 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 has approximately 12,000 employees and operates from multiple locations worldwide. The Company had 2012 revenues of over $11 billion. For more information about Huntsman, please visit the company's website at www.huntsman.com.
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.
SOURCE Huntsman Corporation
Released March 21, 2013