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.
July 3, 2007