Huntsman selling two chemical units to Indorama Ventures for $2 billion

Texas-based chemical maker Huntsman Corp. is selling its chemical intermediates businesses – which includes including propylene oxide and methyl tert-butyl ether production – and its surfactants businesses to petrochemicals company Indorama Ventures for approximately US$2 billion.

Under the terms of the agreement, Thailand-based Indorama Ventures would acquire Huntsman’s manufacturing facilities located in Port Neches, Texas; Dayton, Texas; Chocolate Bayou, Texas; Ankleshwar, India; and Botany, Australia.

The transaction is expected to close near year-end.

The ethylene business has been one of Huntsman’s slowest-growing businesses, and the sale will give it cash to expand its core polyurethane business. “This is another milestone in our stated strategy to focus more on our downstream and specialty businesses where we will generate more stable margins and consistent, strong free cash flow,” Peter Huntsman, chairman, president and CEO, said in a statement.

Huntsman, which reported revenues of more than US$9 billion last year, makes and markets differentiated and specialty chemicals, and has business in about 30 countries.

Indorama Ventures is part of Singapore-based Indorama Corp., and makes a range of petrochemical products, including PET, packaging, fibers, and recycled products.