CMAI Evaluates Huntsman's Strategic Business Position HOUSTON, Feb. 11 /PRNewswire/ -- Chemical Market Associates, Inc. (CMAI) has published the Huntsman (NYSE:HUN) Chemical Company Analysis (CCA). This 250-page report contains detailed analysis including strategic direction, financial overviews, business operations/positions, manufacturing site descriptions and product material balances for Huntsman and its subsidiaries and joint ventures involved in the chemical industry. Global overviews and 5-year forecasts for key products and business areas pertinent to Huntsman's operations provide valuable background information. (Photo: http://www.newscom.com/cgi-bin/prnh/20050211/DAF021 ) Today Huntsman is one of the largest privately-held, global petrochemical producers of intermediates and specialty chemicals. In the past, Huntsman pursued a growth strategy based on acquisitions of companies, often during cyclical downturns, in high growth markets. Business segments with declining growth prospects were divested in a similar manner, such as Huntsman's sale of the polystyrene and packaging business in the late 1990s. The same business philosophy underlies Huntsman's current product composition with increasing emphasis on high-growth intermediates and specialty chemicals rather than base chemicals. The landscape of the petrochemical industry is changing dramatically with the emergence of China as a major global manufacturing base and concerted efforts in the Middle East to develop its downstream petrochemical industry. The immense demand requirements of the former and highly advantaged feedstock position of the latter will shape the development of the global petrochemical industry in the future. Huntsman together with many other large chemical producers, whose production facilities are primarily located in the more mature, slower-growing markets of North America and West Europe, has adjusted its growth strategy to the changing circumstances. The Shanghai/China isocyanate venture with BASF and several Chinese companies, and technology license and ownership share in the Gulf Advanced Chemical Industry Company in Saudi Arabia are examples of Huntsman's new strategic direction. Plant closures and consolidation in North America and West Europe have streamlined Huntsman's operations. Huntsman also adopted a $200 million cost cutting plan following the acquisition of Vantico in 2003. Efforts to contain cost will benefit Huntsman in the current upcycle of the petrochemical industry. Earnings are expected to peak in 2005 and 2006. However, once the large capacity additions in the Middle East and Asia come on-stream toward the end of the decade, Huntsman may have to implement further adjustments to stay ahead in a more competitive global environment. The Chemical Company Analysis (CCA) Program is a multi-client service aimed at analyzing the structure, dynamics, competition and strategic issues of global and regional chemical industry participants. The 2005 Edition of the CCA Program analyzes the manufacturing operations, business operations/positions, and global market trends of key products and business areas for Huntsman, BP Olefins & Derivatives, Reliance, Dow, Arkema and Basell. For additional information on this analysis, visit CMAI's website at http://www.cmaiglobal.com/ or contact: Susan Beury CMAI 11757 Katy Freeway, Suite 750 Houston, TX 77079 U.S.A. Tel: 281 531-4660 Fax: 281 531-9966 http://www.newscom.com/cgi-bin/prnh/20050211/DAF021 http://photoarchive.ap.org/ DATASOURCE: Chemical Market Associates, Inc. CONTACT: Susan Beury of Chemical Market Associates, Inc., +1-281-531-4660, or fax, +1-281-531-9966, or Web site: http://www.cmaiglobal.com/

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