31 July 2013 21:05 [Source: ICIS news]
HOUSTON (ICIS)--US-based polyurethanes producer Huntsman plans to apply the technology of its pending Oxid acquisition to its worldwide operations, the CEO said on Wednesday.
Huntsman compared the Oxid acquisition to earlier ones that the company has made around the world.
In March, the company acquired a 20% stake in Nippon Aqua, a spray polyurethane (PU) foam insulation company based in Yokohama, Japan.
In 2012, Huntsman acquired the remaining interest in its Russian polyurethane (PU) joint venture, giving it full ownership of Huntsman NMG (HNMG).
In 2011, Huntsman acquired the Turkish polyurethanes systems house EMA Kimya Sistemleri Sanayi ve Ticaret.
Huntsman's latest deal, Oxid, should close in the third quarter, the company has said. Financial terms have not been disclosed.
Oxid makes polyester polyols, a raw material for polyurethane.
The acquisition should complement Huntsman since it is strong in polyether polyols, another polyurethane raw material, said Kimo Esplin, Huntsman's chief financial officer.
For polyurethanes in general, the company continued to see strong growth in the Americas during the second quarter because of the region's housing recovery, Peter Huntsman said.
The company's composite wood products business grew by more than 20% in the second quarter, and commercial-insulation sales rose by more than 10%, the CEO said.
In Asia, China's growth has clearly slowed, although the rest of the region is doing well, Huntsman said. Demand in Europe should remain flat because of consumer weakness, he added.
Longer term, Esplin said Huntsman should benefit from a growing trend in Europe and Asia toward energy efficiency. Among their many uses, polyurethanes are used to make insulation foam.
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