Huntsman acquires Laffan of India

Mumbai, April 4: The American global manufacturer and marketer of chemicals, Huntsman Corporatio announced that it has acquired the Gujarat based Laffan Petrochemical. Huntsman also stated that it has taken ownership of the manufacturer"s 60kt ethylene oxide derivatives facility at Ankleshwar, Gujarat.

Huntsman is listed on the NYSE (New York Stock Exchange), meanwhile Laffans is traded on the BSE (Bombay Stock Exchange).

The company, Huntsman Corporation, had revenues close to $9.2 billion in 2010. For this period, Laffans revenue was $50 million. Laffans acquisition follows $70 million investment in a capacity expansion program at its (polyetheramine) plant in Singapore.

“This acquisition is a continuation of our strategy to build our Asian business. We look forward to integrating this business and further expanding our Indian business," said Peter R. Huntsman, President and Chief Executive Officer of Huntsman Corporation. Neirther of the two parties stated the value of this acquisition.

RIL, Reliance Industries Ltd. had assisted Laffans to set up the plant at Ankleshwar, and Hazira plant of Reliance stands in proximity. The unit operates the largest loop reactor in India.

Laffans products cater to intermediate use in agrochemicals, household, etc out of its Ankleshwar plant.

Post-deal, the chemicals business of Laffans will be made part of the Huntsman Performance Products, this will give it the first dedicated production plant in the country, Huntsman said in a release.

Sandeep Seth, MD of Laffans Petrochemical ltd. said "This is an exciting step in the evolution of Laffans chemical business, Huntsman bring a wealth of product technology and application expertise to meet the growing needs of the Indian market and is ready to take the business to the next level."

The 140 people at the Ankleshwar site and 25 people from Mumbai along with all other regional commercial sites will join Huntman.

OneIndia News