Huntsman and Flint Hills Resources Close on Sale of U.S. Polymers Business
August 01 2007 - 9:00AM
PR Newswire (US)
Sale of Port Arthur Base Chemicals Business to Close upon Plant
Restart THE WOODLANDS, Texas, Aug. 1 /PRNewswire-FirstCall/ --
Peter R. Huntsman, President and CEO of Huntsman Corporation
(NYSE:HUN), today announced that Huntsman and Flint Hills
Resources, LP, an independent, wholly owned subsidiary of Koch
Industries, Inc., have closed on the sale of Huntsman's U.S.
Polymers business. The parties will close on the sale of Huntsman's
remaining U.S. Base Chemicals business upon the restart of
Huntsman's Port Arthur, Texas, olefins manufacturing facility,
commissioning of which is expected to occur later this year.
Huntsman received approximately $350 million at the closing,
including the estimated value of associated inventory for its U.S.
Polymers business, which remains subject to a post-closing
adjustment. Huntsman will retain other elements of working capital,
including accounts receivables, accounts payable and certain
accrued liabilities, which will be liquidated for cash. Included in
the closing announced today are Huntsman's manufacturing assets
located at four U.S. sites: Odessa and Longview, Texas; Peru,
Illinois; and Marysville, Michigan. Huntsman's amorphous
polyalphaolefin (or APAO) products, which Flint Hills will
manufacture for Huntsman at the Odessa site under a long-term
supply arrangement, are not included in the sale. "We are delighted
to have closed on the sale of our U.S. Polymers business and look
forward to completing this strategic divestiture by closing on the
sale of our U.S. Base Chemicals business later this year," said
Peter Huntsman. "The associates that have transferred to FHR today
are among the finest in our industry, and we are pleased they have
joined another world class operator of chemical assets." "Today's
acquisition is an important step for Flint Hills Resources as we
seek opportunities to leverage our capabilities," said Brad Razook,
president and chief executive officer of Kansas-based Flint Hills
Resources, LP. "With the addition of these polymer production
assets and the talented, experienced workforce, we believe we are
positioned to create superior value for our customers and continue
growing." About Huntsman Corporation: Huntsman is a global
manufacturer and marketer of differentiated chemicals. Its
operating companies manufacture products for a variety of global
industries, including chemicals, plastics, automotive, aviation,
textiles, footwear, paints and coatings, construction, technology,
agriculture, health care, detergent, personal care, furniture,
appliances and packaging. Originally known for pioneering
innovations in packaging and, later, for rapid and integrated
growth in petrochemicals, Huntsman today has 14,000 employees and
over 75 operations in 24 countries. The Company had 2006 revenues
from all operations of over $13 billion. Statements in this release
that are not historical are forward-looking statements. These
statements are based on management's current beliefs and
expectations. The forward-looking statements in this release are
subject to uncertainty and changes in circumstances and involve
risks and uncertainties that may affect the company's operations,
markets, products, services, prices and other factors as discussed
in the Huntsman companies' filings with the U.S. Securities and
Exchange Commission. Significant risks and uncertainties may relate
to, but are not limited to, financial, economic, competitive,
environmental, political, legal, regulatory and technological
factors. In addition, the completion of any transactions described
in this release is subject to a number of uncertainties and to
negotiation and execution of definitive agreements among the
parties and closing will be subject to approvals and other
customary conditions. Accordingly, there can be no assurance that
such transactions will be completed or that the company's
expectations will be realized. The company assumes no obligation to
provide revisions to any forward-looking statements should
circumstances change, except as otherwise required by applicable
laws. About Flint Hills Resources: Flint Hills Resources, LP is a
leading producer of fuels, base oils for lubricants, and other
petrochemical products, based in Wichita, Kan. It owns refineries
in Alaska, Minnesota and Texas, a chemical intermediates plant near
Joliet, Ill., pipelines, and an interest in Excel Paralubes in
Westlake, La. The company produces pseudocumene at its Corpus
Christi, Texas, facility, as well as other building-block chemicals
such as metaxylene, orthoxylene, paraxylene, benzene, cumene and
toluene. In Illinois, the company produces maleic anhydride,
trimellitic anhydride and purified isophthalic acid. Flint Hills
Resources became an independent, wholly owned subsidiary of Koch
Industries, Inc., in January, 2002 in order to focus on growth
opportunities. This acquisition is a direct result of that business
mandate, and adds to assets acquired in 2003 and 2004. DATASOURCE:
Huntsman Corporation CONTACT: media, Russ Stolle, +1-281-719-6624,
or investors, John Heskett, +1-801-584-5768, both of Huntsman; or
Marc Palazzo of Flint Hills Resources, +1-316-828-7462 Web site:
http://www.huntsman.com/
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