Huntsman mulls acquisition of China chemical plants

Sep. 7, 2009 (China Knowledge) - Huntsman, a U.S.-based chemical manufacturer and trader, is considering buying specialty chemical plants in China, according to Paul Hulme, global president of Huntsman’s textile effects division, the Financial Times reported.

Hulme said the global chemical group is looking for acquisition opportunities, which will be funded by part of a US$2.7-billion compensation package from a failed buy-out plan by Hexion to complete the potential deals.

Some of the possible facilities were owned by European firms Clariant International and BASF AG, said the report,

Earlier this year, Huntsman moved the headquarters of Huntsman Textile Effects to Singapore from Basel, Switzerland, aiming to further develop its business in Asia.

It is estimated that the value of the global chemical and dye market was about US$10 billion, in which Huntsman took a 14% market share. The American chemical group recorded US$1 billon of revenue last year, 55% of which came from Asia.