Concerns for safety leads to shutdown of Huntsman subsidiary in Texas

27-Aug-05

Rendering safety to be its top priority a subsidiary of Huntsman Corporation (NYSE) has temporarily closed its Port Neches, Texas PO/MTBE manufacturing facility for impromptu maintenance and repairs. Huntsman known for pioneering innovations in packaging and rapid and integrated growth in petrochemicals has progressed on its path by issuing force majeure notices to customers that are likely to face the brunt of the shutdown expected to last for about 48 days. The closed facility has an annual production capacity of 525 million pounds of propylene oxide, 260 million gallons of methyl tertiary butyl ether and 145 million pounds of propylene glycol. Thus this shutdown is certain to be a commercial and financial setback to Huntsman as it is estimated to impact its margins in the polyurethanes and performance products segments by approximately US $30 million in Q3. But the company does not seem to be discouraged as it is believed to consider this a step to optimize safety in operating the facility. However it is working on plans to lessen the impact the shutdown will have on the operations of its customers.