Huntsman To Purchase
Metrochem's Baroda Division

The Textile Effects Division of Huntsman Corp., Salt Lake City, is set to purchase India-based Metrochem Industries Ltd.’s Baroda Division — a manufacturer of textile dyes and intermediates that has long served as a supplier for Textile Effects — for $46.5 million. The acquisition is expected to close in January 2008.

“This acquisition further strengthens Huntsman’s textiles business and represents another example of Huntsman’s ongoing commitment to further growth of its differentiated product lines,” said Paul Hulme, president, Materials and Effects Division, Huntsman. “After the acquisition of the Textile Effects business from Ciba in June 2006, we announced a restructuring plan for the business that includes an investment plan to optimize our supply chain in Asia, our fastest growing market. We are very pleased to be able to announce this acquisition, which is a major milestone in our growth and geographic strategy.”

This announcement comes on the heels of Huntsman’s recent acquisition of majority ownership of the Arabian Polyol Co., a polyurethanes joint venture it owned with Saudi Arabia-based Basic Chemical Industries Ltd. It also follows the Netherlands-based Basell’s recent announcement that it intends to acquire Huntsman in a multibillion-dollar deal. That transaction is not expected to close until the fourth quarter of this year.