29 October 2013 20:34 [Source: ICIS news]
HOUSTON (ICIS)--US-based isocyanates producer Huntsman seeks to improve margins for its methyl di-p-phenylene isocyanate (MDI) by taking it further downstream, the CEO said on Tuesday.
The goal would be to move the company's MDI into more specialty intermediate products and embedded applications, said CEO Peter Huntsman. He made his comments during an earnings conference call.
Such a strategy should lead to higher margins, less volatility and less competition, he said.
During the third quarter, Huntsman's MDI volumes grew by 9% year on year, excluding the effects of a force majeure in Europe, the company said.
During the quarter, the company saw double-digit growth in two of its largest end markets for MDI, insulation and composite wood products.
Europe could have modest growth because of a recovery in the company's insulation end market, Huntsman said. Demand should remain strong in the Americas and Asia.
Looking ahead, Peter Huntsman said he was more optimistic about MDI demand in Asia, particularly China, than he was during the previous quarter.
Overall, MDI should continue to tighten, he said.
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