Huntsman-Clariant Merger Combines More Than $1 Billion in Project Activity

Researched by Industrial Info Resources (Sugar Land, Texas)--Specialty chemicals companies Huntsman Corporation (NYSE:HUN) (The Woodlands, Texas) and Clariant AG (Muttenz, Switzerland) announced Monday that they would be combining in an all-stock "merger of equals." The merged company will be named HuntsmanClariant and will have an enterprise value of approximately $20 billion, according to a Huntsman press release. Industrial Info is tracking more than $1 billion in Huntsman and Clariant projects.

The companies produce a range of specialty chemicals for a number of sectors, including personal care and hygiene, petrochemicals, refining, plastics, inks, electronics and many others. "Clariant and Huntsman are joining forces to gain much broader global reach, create more sustained innovation power and achieve new growth opportunities," said Clariant Chief Executive Officer Hariolf Kottmann in a press release.

The companies said they expect the merger to be completed by the end of the year.

Huntsman Corporation is already in the process of spinning off part of its company into a separately public traded entity called Venator Materials Corporation, which will focus primarily on pigments, in particular titanium dioxide production.

Among the largest Huntsman projects being tracked by Industrial Info is the addition of methylene diphenylene isocyanate (MDI) unit at the company's facility in Geismar, Louisiana, although the project remains in early stages and other locations are being considered. The Geismar facility is owned by Rubicon LLC (Geismar), Huntsman's joint venture with Chemtura Corporation (NYSE:CHMT) (Middlebury, Connecticut). The addition would produce approximately 882 pounds per year of MDI, bringing the total plant capacity to about 1,984 pounds of MDI per year. For more information, see Industrial Info's project report. MDI is primarily used in the production of rigid polyurethane, used in refrigerators and freezers.

At the Geismar facility, Huntsman is under way with an MDI pures and variants unit debottleneck and expansion to increase production capacity. The project began in the first half of 2016 and is expected to be completed by the end of this year. For more information, see Industrial Info's project report.

Among the largest Clariant projects is a planned ethylene oxide unit addition. The location of the plant is yet to be determined, although the Texas Gulf Coast region remains a strong possibility. The new unit will produce an estimated 100,000 to 200,000 tons per year of ethylene oxide. The project remains in the early planning stages, but could kick off by the end of 2018 and would take about two years to complete once started. For more information, see Industrial Info's project report.

In addition to major capital projects, Industrial Info also is tracking more than $200 million in planned maintenance projects at Clariant and Huntsman facilities throughout the world.

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