Flint Hill Resources to purchase Huntsman’s commodities business

Salt Lake City, Utah-based chemical supplier Huntsman Corporation has sold its U.S. base chemicals and polymers business to Flint Hills Resources (FHR), a subsidiary of Koch Industries Inc., in a deal valued at more than US$750 million.

The transaction includes Huntsman’s olefins and polymers manufacturing plants in Port Arthur, Odessa and Longview, Tex.; Peru, Ill.; and Marysville, Mich. These facilities, which employ approximately 900 workers, recorded combined annuals sales of US$2.3 billion in 2006. The transaction, which is expected to close during the third quarter 2007, does not include Huntsman’s Port Neches, Tex. captive ethylene unit.

“These assets offer us new opportunities for continued growth and diversification, as well as for creating customer value,” Brad Razook, president and CEO of Wichita, Ks.-based FHR, said. “Once the acquisition concludes, we expect to position these plants for long-term success in the ever-changing global market.”