Salt Lake City-based Huntsman Corp. has acquired India-based Metrochem Industries Ltd.'s Baroda Division, which produces intermediates and specialty products for textiles, for an undisclosed price. The division comprises more than 700 employees and contractors and has annual sales of approximately 2.4 billion rupees.

"This acquisition is a major milestone in our strategy," said Paul Hulme, president, Huntsman's Switzerland-based Textile Effects division (TE). "With this move, we are realigning our manufacturing footprint towards Asia, the region that will fuel our growth in the years to come." 

Within Huntsman TE, the Baroda site is second in size to the Basel, Switzerland, facility, and could be expanded specifically in the fields of specialty dyes and key intermediates needed to produce dyes in India and other TE plants. Huntsman TE is integrating the Baroda site with its existing plants in Qingdao and Panyu, China, and Mahachai, Thailand, making Asia the primary hub. 

"This vertical backward integration will significantly strengthen our competitiveness and support our development in Asia, and most notably in India, one of our largest markets," Hulme said. "The world of specialty textiles has been changing at a rapid pace, with new materials, technologies and innovations in production around the world. Supporting the growth of the Indian textile industry means exploring opportunities beyond the conventional textile chain of fiber to fashion - penetrating the nonwoven and technical segments of the textiles industry as well."

Huntsman TE recently unveiled a new business structure focusing on moving the center of business to Asia. The company also announced it will be moving the TE headquarters from Basel to Singapore (See "Huntsman Textile Effects To Establish Singapore Headquarters," www. TextileWorld.com, March 3, 2009.)

June 30, 2009