EX-99.1
2
a06-14682_1ex99d1.htm
EX-99
Exhibit 99.1
FOR IMMEDIATE RELEASE:
Media Contact:
Investor Relations:
June 27, 2006
Don H. Olsen
John Heskett
(281) 719-4175
(801) 584-5768
HUNTSMAN CLOSES SALE OF U.S. BUTADIENE BUSINESS
The
Woodlands, TX -
Huntsman Corporation (NYSE:
HUN), announced today that the Company has closed on the sale of its U. S.
butadiene and MTBE business, which includes a manufacturing facility located in
Port Neches, Texas, to Texas Petrochemicals, L.P. The total sales price was
approximately $262 million, of which $192 million was paid today, while an
additional $70 million will be payable to Huntsman following the restart of the
Company's Port Arthur olefins unit and the related resumption of
crude butadiene supply to
Texas Petrochemicals, LP. The final purchase price remains subject to a
customary post-closing working capital adjustment.
Huntsman has owned the
butadiene/MTBE business since its 1994 acquisition of Texaco Chemical Company.
The manufacturing facility has a capacity of approximately 900 million pounds
of butadiene per year and approximately 11,000 barrels per day of MTBE. The
business had 2005 revenues of approximately $645 million.
Peter R. Huntsman, President
and CEO, commented, "This transaction reflects our strategy to pursue the sale
or spin off of our commodity businesses and to focus more of our attention and
resources on our differentiated portfolio. In fact, this is the first major
step toward that goal. We believe that the separation of our commodity business
will create shareholder value and we continue to work aggressively to this end.
We intend to utilize the proceeds from this sale to reduce debt and to invest
in other parts of the Company, including the soon to be complete acquisition of
Ciba's Textile Effects
business.
"We pay tribute to our
associates who have worked in and currently run the business and facility; they
are some of the most talented and dedicated professionals in the chemical
industry. When we purchased the business in 1994 it was on the verge of
closure. Butadiene is a core product for Texas Petrochemical, and we believe
this sale to will ensure a long-term future for this site".
Huntsman's PO/MTBE and
Oxides/Olefins facilities in Port Neches and its facility in nearby Port Arthur
are not included in the sale.
Huntsman is a global
manufacturer and marketer of differentiated and commodity chemicals. Its
operating companies manufacture basic products for a variety of global
industries including chemicals, plastics, automotive, aviation, footwear,
paints and coatings, construction, technology, agriculture, health care,
textiles, detergent, personal care, furniture, appliances and packaging.
Originally known for pioneering innovations in packaging, and later, rapid and
integrated growth in petrochemicals, Huntsman today has 11,300 employees, 57
operations in 22 countries and had 2005 revenues of $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 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. Accordingly, there can be no assurance 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 securities and other applicable laws.

EX - 99 . 1 2 a06 - 14682 _ 1ex99d1 . htm EX - 99 Exhibit 99 . 1 FOR IMMEDIATE RELEASE : Media Contact : Investor Relations : June 27 , 2006 Don H . Olsen John Heskett ( 281 ) 719 - 4175 ( 801 ) 584 - 5768 HUNTSMAN CLOSES SALE OF U . S . BUTADIENE BUSINESS The Woodlands , TX - Huntsman Corporation ( NYSE : HUN ) , announced today that the Company has closed on the sale of its U . S . butadiene and MTBE business , which includes a manufacturing facility located in Port Neches , Texas , to Texas Petrochemicals , L . P . The total sales price was approximately $ 262 million , of which $ 192 million was paid today , while an additional $ 70 million will be payable to Huntsman following the restart of the Company 's Port Arthur olefins unit and the related resumption of crude butadiene supply to Texas Petrochemicals , LP . The final purchase price remains subject to a customary post - closing working capital adjustment . Huntsman has owned the butadiene / MTBE business since its 1994 acquisition of Texaco Chemical Company . The manufacturing facility has a capacity of approximately 900 million pounds of butadiene per year and approximately 11,000 barrels per day of MTBE . The business had 2005 revenues of approximately $ 645 million . Peter R . Huntsman , President and CEO , commented , " This transaction reflects our strategy to pursue the sale or spin off of our commodity businesses and to focus more of our attention and resources on our differentiated portfolio . In fact , this is the first major step toward that goal . We believe that the separation of our commodity business will create shareholder value and we continue to work aggressively to this end . We intend to utilize the proceeds from this sale to reduce debt and to invest in other parts of the Company , including the soon to be complete acquisition of Ciba 's Textile Effects business . " We pay tribute to our associates who have worked in and currently run the business and facility ; they are some of the most talented and dedicated professionals in the chemical industry . When we purchased the business in 1994 it was on the verge of closure . Butadiene is a core product for Texas Petrochemical , and we believe this sale to will ensure a long - term future for this site " . Huntsman 's PO / MTBE and Oxides / Olefins facilities in Port Neches and its facility in nearby Port Arthur are not included in the sale . Huntsman is a global manufacturer and marketer of differentiated and commodity chemicals . Its operating companies manufacture basic products for a variety of global industries including chemicals , plastics , automotive , aviation , footwear , paints and coatings , construction , technology , agriculture , health care , textiles , detergent , personal care , furniture , appliances and packaging . Originally known for pioneering innovations in packaging , and later , rapid and integrated growth in petrochemicals , Huntsman today has 11,300 employees , 57 operations in 22 countries and had 2005 revenues of $ 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 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 . Accordingly , there can be no assurance 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 securities and other applicable laws .
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