HUNTSMAN is selling its chemicals intermediates business to Indorama Ventures for US$2bn.
The Thai chemicals firm will take control of Huntsman manufacturing sites in Port Neches, Dayton, and Chocolate Bayou in Texas, US; Botany, Australia; and Ankleshwar, India. Products manufactured at these sites include ethylene oxide, propylene oxide, glycols, surfactants and MTBE.
Huntsman CEO Peter Huntsman said: “This is another milestone in our stated strategy to focus more on our downstream and specialty businesses where we will generate more stable margins and consistent, strong free cash flow.”
He added: “This is also a transformational opportunity for Indorama Ventures that provides them hundreds of product grades and thousands of customers. Huntsman looks forward to continuing to work with Indorama Ventures as a customer and manufacturing partner through long-term commercial arrangements, including propylene oxide supply.”
It is the largest acquisition by Indorama, which described the deal as “game-changing”. Indorama Ventures CEO Aloke Lohia said the purchase accelerates the firm's efforts to become a global, diversified chemicals company.
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