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Huntsman

    MUTTENZ, Switzerland, Nov. 24, 2017 (Press Release) -
  • Clariant's Board of Directors approved the Executive Committee's plan to define a concrete set of measures, including M&A activities, to enhance value creation
  • Clariant will present details on its updated strategy to investors in the beginning of 2018
  • Süd-Chemie legacy shareholders and the majority of institutional shareholders back this approach and support management and the Board of Directors

Clariant, a world leader in specialty chemicals, today announced that its Board of Directors has approved the Executive Committee's proposal to update Clariant's strategy in order to further increase value creation. The plan was developed as a consequence of the termination of the intended merger with Huntsman, which was forced by activist shareholders.

The implementation of Clariant's existing growth strategy as well as further value creation would have been accelerated by the merger with Huntsman. It would have generated more than $3.5 billion of shareholder value through the realization of massive synergies and a promising optionality from a portfolio and capital strength perspective. Clariant's management is fully aware that the new situation following the termination of the merger will require additional efforts to update the strategy which will now be implemented on an accelerated basis.

Therefore, the Board of Directors supports the Executive Committee's intention to build upon Clariant's existing strategy by defining further actions such as M&A activities, short-term portfolio management options, potential returns to shareholders, a thorough review of the cost base and the pursuit of additional growth opportunities. Clariant's recently announced investment in the sunliquid® technology is one example of the latter.

Since Clariant's well-proven and successful growth strategy was and is unanimously supported by the Süd-Chemie legacy shareholders, representing approximately 15% of the outstanding shares, as well as the vast majority of institutional shareholders, the company has a broad global backing for continuing its course of reaching a position in the top tier of the specialty chemicals industry. Clariant will announce and present details concerning these activities to its investors in the beginning of 2018, well before its Annual General Meeting in March.

Clariant BOD approves Executive Committee's proposal to update strategy to further enhance growth and value creation

Posted in: Chemicals 11/24/2017 - 01:19
    MUTTENZ, Switzerland, Nov. 24, 2017 (Press Release) -
  • Clariant's Board of Directors approved the Executive Committee's plan to define a concrete set of measures, including M&A activities, to enhance value creation
  • Clariant will present details on its updated strategy to investors in the beginning of 2018
  • Süd-Chemie legacy shareholders and the majority of institutional shareholders back this approach and support management and the Board of Directors

Clariant, a world leader in specialty chemicals, today announced that its Board of Directors has approved the Executive Committee's proposal to update Clariant's strategy in order to further increase value creation. The plan was developed as a consequence of the termination of the intended merger with Huntsman, which was forced by activist shareholders.

The implementation of Clariant's existing growth strategy as well as further value creation would have been accelerated by the merger with Huntsman. It would have generated more than $3.5 billion of shareholder value through the realization of massive synergies and a promising optionality from a portfolio and capital strength perspective. Clariant's management is fully aware that the new situation following the termination of the merger will require additional efforts to update the strategy which will now be implemented on an accelerated basis.

Therefore, the Board of Directors supports the Executive Committee's intention to build upon Clariant's existing strategy by defining further actions such as M&A activities, short-term portfolio management options, potential returns to shareholders, a thorough review of the cost base and the pursuit of additional growth opportunities. Clariant's recently announced investment in the sunliquid® technology is one example of the latter.

Since Clariant's well-proven and successful growth strategy was and is unanimously supported by the Süd-Chemie legacy shareholders, representing approximately 15% of the outstanding shares, as well as the vast majority of institutional shareholders, the company has a broad global backing for continuing its course of reaching a position in the top tier of the specialty chemicals industry. Clariant will announce and present details concerning these activities to its investors in the beginning of 2018, well before its Annual General Meeting in March.

Read more
    MUTTENZ, Switzerland, Oct. 30, 2017 (Press Release) -
  • Initial talks held over the weekend
  • Clariant management and White Tale share focus on long-term value creation
  • Further conversations are to be held in the coming weeks

Clariant, a world leader in specialty chemicals, has noted White Tale's press release and the demands published therein. Clariant notes that after the announcement of the termination of the merger agreement between Clariant and Huntsman on October 27th 2017, Clariant and its shareholder White Tale have engaged in an initial discussion regarding the new situation for the company and ways to work together in the future.

Clariant's management has offered to White Tale its readiness to present its existing growth strategy, listen to White Tale's plans and discuss appropriate concrete ways forward, including White Tale's wish for seats on the Board of Directors. According to Swiss governance, the requests of White Tale will be discussed in the next Board of Directors meeting.

Like White Tale, Clariant continues to be confident in the future opportunities for long-term value creation for all stakeholders, as a leader in Specialty Chemicals. In order to deepen the discussions, Clariant invited White Tale to hold further talks. In the coming weeks, Clariant will also continue the existing dialogue with all its shareholders, having shown long-term interest in the company.

Clariant engages in initial discussion with shareholder White Tale post termination of proposed merger with Huntsman

Posted in: Chemicals 10/31/2017 - 09:36
    MUTTENZ, Switzerland, Oct. 30, 2017 (Press Release) -
  • Initial talks held over the weekend
  • Clariant management and White Tale share focus on long-term value creation
  • Further conversations are to be held in the coming weeks

Clariant, a world leader in specialty chemicals, has noted White Tale's press release and the demands published therein. Clariant notes that after the announcement of the termination of the merger agreement between Clariant and Huntsman on October 27th 2017, Clariant and its shareholder White Tale have engaged in an initial discussion regarding the new situation for the company and ways to work together in the future.

Clariant's management has offered to White Tale its readiness to present its existing growth strategy, listen to White Tale's plans and discuss appropriate concrete ways forward, including White Tale's wish for seats on the Board of Directors. According to Swiss governance, the requests of White Tale will be discussed in the next Board of Directors meeting.

Like White Tale, Clariant continues to be confident in the future opportunities for long-term value creation for all stakeholders, as a leader in Specialty Chemicals. In order to deepen the discussions, Clariant invited White Tale to hold further talks. In the coming weeks, Clariant will also continue the existing dialogue with all its shareholders, having shown long-term interest in the company.

Read more
  • MUTTENZ, Switzerland, Aug. 15, 2017 (Press Release) -
  • Not Expected to Delay Merger

Clariant AG is pleased to announce progress towards satisfying the regulatory approval condition to closing its merger of equals with Huntsman Corporation. The United States Federal Trade Commission, which reviews the antitrust implications of certain business combinations, late yesterday delivered a second request for information to the parties relating to just two products − sodium isethionate, used in personal care products like soap and shampoos, and a polyetheramine product used in certain construction and additive/paint and ink applications. These products accounted for less than USD 24 million in total revenues of each of the two companies in the United States in 2016, and Clariant is confident that the parties will be able to satisfy any FTC concerns on a timeline consistent with the merger, which we continue to expect to close around year-end.

The regulatory clearance process continues to move forward in other jurisdictions as well and we continue to move forward on this timeline.

Clariant provides update on planned merger of equals with Huntsman; closure expected by year-end

08/17/2017 - 07:28
  • MUTTENZ, Switzerland, Aug. 15, 2017 (Press Release) -
  • Not Expected to Delay Merger

Clariant AG is pleased to announce progress towards satisfying the regulatory approval condition to closing its merger of equals with Huntsman Corporation. The United States Federal Trade Commission, which reviews the antitrust implications of certain business combinations, late yesterday delivered a second request for information to the parties relating to just two products − sodium isethionate, used in personal care products like soap and shampoos, and a polyetheramine product used in certain construction and additive/paint and ink applications. These products accounted for less than USD 24 million in total revenues of each of the two companies in the United States in 2016, and Clariant is confident that the parties will be able to satisfy any FTC concerns on a timeline consistent with the merger, which we continue to expect to close around year-end.

The regulatory clearance process continues to move forward in other jurisdictions as well and we continue to move forward on this timeline.

Read more
  • MUTTENZ, Switzerland, May 22, 2017 (Press Release) -
  • Merger of equals to create a leading global specialty chemical company with approximately $20 billion enterprise value at announcement
  • More than $3.5 billion value creation through annual cost synergies in excess of $400 million
  • Enhanced returns from improved growth profile in highly attractive end markets and key geographies such as the United States and China
  • Opportunities for stronger joint innovation platforms and shared knowledge in sustainability
  • Stronger balance sheet and cash flow generation; plan to continue Clariant’s attractive dividend policy
  • Transaction targeted to close by year end 2017
  • Previously announced IPO of Huntsman’s Pigments and Additives business (Venator) to continue as planned in summer 2017

Clariant and Huntsman Corporation today announced that their Boards of Directors unanimously approved a definitive agreement to combine in a merger of equals through an all-stock transaction.

The merged company will be named HuntsmanClariant. On a pro forma 2016 basis[1], the combination of both companies will create a leading global specialty chemical company with sales of approximately $13.2 billion, an adjusted EBITDA of $2.3 billion and a combined enterprise value of approximately $20 billion at announcement.

The combined entity will benefit from each other’s strengths. It will have a significantly improved growth profile in highly attractive end markets and geographies. HuntsmanClariant will leverage shared knowledge in sustainability and boast a much stronger joint innovation platform. This will enable the development of new products in order to deliver superior returns and drive shareholder value.

CEO Comments

“This is the perfect deal at the right time. Clariant and Huntsman are joining forces to gain much broader global reach, create more sustained innovation power and achieve new growth opportunities,” said Hariolf Kottmann, CEO of Clariant. “This is in the best interest of all of our stakeholders. Peter Huntsman and I share the same strategic vision and I look forward to working with him.” 

Peter R. Huntsman, President and CEO of Huntsman, commented: “I could not be more enthusiastic about this merger and look forward to working closely with Hariolf Kottmann, a man I have admired and trusted for the past decade. We also look forward to a close association with his immensely talented colleagues around the world. Together, we will create a global leader in specialty chemicals with a combined balance sheet providing substantial financial strength and flexibility.”

Transaction highlights

  • All-stock merger of equals transaction
  • Clariant shareholders: 52%, Huntsman shareholders: 48%
  • Huntsman shareholders receive 1.2196 shares in HuntsmanClariant for each Huntsman share (each existing Clariant share will remain outstanding as a share in HuntsmanClariant)
  • Board of Directors with equal representation from Clariant and Huntsman
  • Global Headquarters in Pratteln, Switzerland, Operational Headquarters in The Woodlands, Texas
  • Dual stock exchange direct listing on the SIX Swiss Exchange and the New York Stock Exchange

Value Creation

The new company will accelerate value creation for shareholders through a more robust combination of technology, products and talent. The combined company expects to realize more than $3.5 billion of value creation from approximately $400 million in annual cost synergies. The full synergy run-rate will be achieved within two years of closing. These synergies will be realized by reducing operational costs and improving procurement. The targeted synergies represent roughly 3 percent of total combined 2016 revenue with one-time costs up to $500 million. There will also be additional cash-tax savings.

Corporate Governance

The combined company, incorporated in Switzerland, will be governed by a Board of Directors with equal representation from Clariant and Huntsman and will follow Swiss Corporate Governance standards. Hariolf Kottmann, current Clariant CEO, shall become Chairman of the Board of HuntsmanClariant. Peter Huntsman, current Huntsman President and CEO, will become CEO of HuntsmanClariant. Jon Huntsman, founder and Chairman of Huntsman, shall become Chairman Emeritus and board member of HuntsmanClariant. The merger enjoys strong commitment from both Clariant and Huntsman family shareholders. The company will be listed on the SIX Swiss Exchange and the New York Stock Exchange. HuntsmanClariant will use IFRS, and beginning in Q1 2018 will report in USD and will start filing 10Qs and 10Ks consistent with SEC requirements.

Timing

The transaction is targeted to close by year end 2017, subject to Clariant and Huntsman shareholder approvals, regulatory approvals and other customary closing conditions. Clariant and Huntsman are confident that the required regulatory approvals can be obtained in a timely manner.

Note to Publication

Both Clariant and Huntsman have simultaneously published Media Releases with identical content.

Advisors

Citi and UBS AG are serving as Clariant’s financial advisors for the transaction, with Homburger and Cleary Gottlieb Steen & Hamilton serving as its legal advisors.

BofA Merrill Lynch and Moelis & Company LLC are serving as Huntsman’s financial advisors for the transaction, with Kirkland & Ellis, Bär & Karrer and Vinson & Elkins acting as its legal advisors.

[1] Includes annual $400 million in run-rate cost synergies; pro forma adjusted for Venator.

Clariant and Huntsman to combine in merger of equals to create $20 billion global specialty chemical company

05/22/2017 - 06:12
  • MUTTENZ, Switzerland, May 22, 2017 (Press Release) -
  • Merger of equals to create a leading global specialty chemical company with approximately $20 billion enterprise value at announcement
  • More than $3.5 billion value creation through annual cost synergies in excess of $400 million
  • Enhanced returns from improved growth profile in highly attractive end markets and key geographies such as the United States and China
  • Opportunities for stronger joint innovation platforms and shared knowledge in sustainability
  • Stronger balance sheet and cash flow generation; plan to continue Clariant’s attractive dividend policy
  • Transaction targeted to close by year end 2017
  • Previously announced IPO of Huntsman’s Pigments and Additives business (Venator) to continue as planned in summer 2017

Clariant and Huntsman Corporation today announced that their Boards of Directors unanimously approved a definitive agreement to combine in a merger of equals through an all-stock transaction.

The merged company will be named HuntsmanClariant. On a pro forma 2016 basis[1], the combination of both companies will create a leading global specialty chemical company with sales of approximately $13.2 billion, an adjusted EBITDA of $2.3 billion and a combined enterprise value of approximately $20 billion at announcement.

The combined entity will benefit from each other’s strengths. It will have a significantly improved growth profile in highly attractive end markets and geographies. HuntsmanClariant will leverage shared knowledge in sustainability and boast a much stronger joint innovation platform. This will enable the development of new products in order to deliver superior returns and drive shareholder value.

CEO Comments

“This is the perfect deal at the right time. Clariant and Huntsman are joining forces to gain much broader global reach, create more sustained innovation power and achieve new growth opportunities,” said Hariolf Kottmann, CEO of Clariant. “This is in the best interest of all of our stakeholders. Peter Huntsman and I share the same strategic vision and I look forward to working with him.” 

Peter R. Huntsman, President and CEO of Huntsman, commented: “I could not be more enthusiastic about this merger and look forward to working closely with Hariolf Kottmann, a man I have admired and trusted for the past decade. We also look forward to a close association with his immensely talented colleagues around the world. Together, we will create a global leader in specialty chemicals with a combined balance sheet providing substantial financial strength and flexibility.”

Transaction highlights

  • All-stock merger of equals transaction
  • Clariant shareholders: 52%, Huntsman shareholders: 48%
  • Huntsman shareholders receive 1.2196 shares in HuntsmanClariant for each Huntsman share (each existing Clariant share will remain outstanding as a share in HuntsmanClariant)
  • Board of Directors with equal representation from Clariant and Huntsman
  • Global Headquarters in Pratteln, Switzerland, Operational Headquarters in The Woodlands, Texas
  • Dual stock exchange direct listing on the SIX Swiss Exchange and the New York Stock Exchange

Value Creation

The new company will accelerate value creation for shareholders through a more robust combination of technology, products and talent. The combined company expects to realize more than $3.5 billion of value creation from approximately $400 million in annual cost synergies. The full synergy run-rate will be achieved within two years of closing. These synergies will be realized by reducing operational costs and improving procurement. The targeted synergies represent roughly 3 percent of total combined 2016 revenue with one-time costs up to $500 million. There will also be additional cash-tax savings.

Corporate Governance

The combined company, incorporated in Switzerland, will be governed by a Board of Directors with equal representation from Clariant and Huntsman and will follow Swiss Corporate Governance standards. Hariolf Kottmann, current Clariant CEO, shall become Chairman of the Board of HuntsmanClariant. Peter Huntsman, current Huntsman President and CEO, will become CEO of HuntsmanClariant. Jon Huntsman, founder and Chairman of Huntsman, shall become Chairman Emeritus and board member of HuntsmanClariant. The merger enjoys strong commitment from both Clariant and Huntsman family shareholders. The company will be listed on the SIX Swiss Exchange and the New York Stock Exchange. HuntsmanClariant will use IFRS, and beginning in Q1 2018 will report in USD and will start filing 10Qs and 10Ks consistent with SEC requirements.

Timing

The transaction is targeted to close by year end 2017, subject to Clariant and Huntsman shareholder approvals, regulatory approvals and other customary closing conditions. Clariant and Huntsman are confident that the required regulatory approvals can be obtained in a timely manner.

Note to Publication

Both Clariant and Huntsman have simultaneously published Media Releases with identical content.

Advisors

Citi and UBS AG are serving as Clariant’s financial advisors for the transaction, with Homburger and Cleary Gottlieb Steen & Hamilton serving as its legal advisors.

BofA Merrill Lynch and Moelis & Company LLC are serving as Huntsman’s financial advisors for the transaction, with Kirkland & Ellis, Bär & Karrer and Vinson & Elkins acting as its legal advisors.

[1] Includes annual $400 million in run-rate cost synergies; pro forma adjusted for Venator.

Read more

THE WOODLANDS, TX, March 17, 2017 (Press Release) -Huntsman Corporation has today announced a plan to close the white end finishing and packaging operation of its titanium dioxide (TiO2) manufacturing facility based in Calais, France, during the third quarter 2017.

The announced plan follows the 2015 closure of the black end manufacturing operations and would result in the closure of the entire facility. 108 positions on the site will be affected.

The plan to close the Calais white end is structured to allow completion of any remaining obligations to any third parties and regulators.

Simon Turner, President of Huntsman Pigments and Additives division, commented: “The planned closure of the Calais facility further optimizes our manufacturing network and will increase our recently announced business improvement program by $15 million to a total annual benefit of $90 million. Our priority is to communicate with our Calais employees and their representative groups, along with local community leaders, to ensure that the planned closure is safely and effectively managed.”

About Huntsman:

Huntsman Corporation is a publicly traded global manufacturer and marketer of differentiated chemicals with 2016 revenues of approximately $10 billion.  Our chemical products number in the thousands and are sold worldwide to manufacturers serving a broad and diverse range of consumer and industrial end markets. We operate more than 100 manufacturing and R&D facilities in approximately 30 countries and employ approximately 15,000 associates within our 5 distinct business divisions including the Pigments and Additives division that we intend to spin-off as Venator Materials Corporation.

US-based Huntsman to close white end finishing and packaging operation of its titanium dioxide manufacturing facility in Calais, France

Posted in: Chemicals 03/23/2017 - 05:17

THE WOODLANDS, TX, March 17, 2017 (Press Release) -Huntsman Corporation has today announced a plan to close the white end finishing and packaging operation of its titanium dioxide (TiO2) manufacturing facility based in Calais, France, during the third quarter 2017.

The announced plan follows the 2015 closure of the black end manufacturing operations and would result in the closure of the entire facility. 108 positions on the site will be affected.

The plan to close the Calais white end is structured to allow completion of any remaining obligations to any third parties and regulators.

Simon Turner, President of Huntsman Pigments and Additives division, commented: “The planned closure of the Calais facility further optimizes our manufacturing network and will increase our recently announced business improvement program by $15 million to a total annual benefit of $90 million. Our priority is to communicate with our Calais employees and their representative groups, along with local community leaders, to ensure that the planned closure is safely and effectively managed.”

About Huntsman:

Huntsman Corporation is a publicly traded global manufacturer and marketer of differentiated chemicals with 2016 revenues of approximately $10 billion.  Our chemical products number in the thousands and are sold worldwide to manufacturers serving a broad and diverse range of consumer and industrial end markets. We operate more than 100 manufacturing and R&D facilities in approximately 30 countries and employ approximately 15,000 associates within our 5 distinct business divisions including the Pigments and Additives division that we intend to spin-off as Venator Materials Corporation.

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THE WOODLANDS, TX, Jan. 31, 2017 (Press Release) -A fire started January 30 at Huntsman Corporation’s (NYSE: HUN) titanium dioxide manufacturing facility in Pori, Finland. All Huntsman associates at the site have been accounted for and there were no injuries. The fire brigade responded quickly and extinguished the fire.

Pori has a capacity of 130,000 metric tons, which represents approximately 15% of Huntsman’s total titanium dioxide capacity and approximately 10% of total European demand. The site is insured for property damage as well as earnings losses. Huntsman is committed to repairing the facility as quickly as possible to ensure that customers can continue to receive the quality products offered by our Pori site.

The ongoing process to separate the Pigments and Additives business from Huntsman is proceeding.

About Huntsman:

Huntsman Corporation is a publicly traded global manufacturer and marketer of differentiated chemicals with 2015 revenues of more than $10 billion. Our chemical product number in the thousands and are sold worldwide to manufacturers serving a broad and diverse range of consumer and industrial end markets. We operate more than 100 manufacturing and R&D facilities in approximately 30 countries and employ approximately 15,000 associates within our 5 distinct business divisions, including the Pigments and Additives division that we intend to spin-off as Venator Materials Corporation.

Fire hits Huntsman's titanium dioxide manufacturing facility in Pori, Finland; no injuries reported

Posted in: Chemicals 02/16/2017 - 04:39

THE WOODLANDS, TX, Jan. 31, 2017 (Press Release) -A fire started January 30 at Huntsman Corporation’s (NYSE: HUN) titanium dioxide manufacturing facility in Pori, Finland. All Huntsman associates at the site have been accounted for and there were no injuries. The fire brigade responded quickly and extinguished the fire.

Pori has a capacity of 130,000 metric tons, which represents approximately 15% of Huntsman’s total titanium dioxide capacity and approximately 10% of total European demand. The site is insured for property damage as well as earnings losses. Huntsman is committed to repairing the facility as quickly as possible to ensure that customers can continue to receive the quality products offered by our Pori site.

The ongoing process to separate the Pigments and Additives business from Huntsman is proceeding.

About Huntsman:

Huntsman Corporation is a publicly traded global manufacturer and marketer of differentiated chemicals with 2015 revenues of more than $10 billion. Our chemical product number in the thousands and are sold worldwide to manufacturers serving a broad and diverse range of consumer and industrial end markets. We operate more than 100 manufacturing and R&D facilities in approximately 30 countries and employ approximately 15,000 associates within our 5 distinct business divisions, including the Pigments and Additives division that we intend to spin-off as Venator Materials Corporation.

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THE WOODLANDS, TX, Feb. 9, 2017 (Press Release) -Huntsman Corporation today announced global price increases for all its titanium dioxide pigments.

The following increases are effective April 1, 2017 or as contracts allow.

  • Europe, Africa, Middle East and Latin America: €235 (Euros) per tonne or $250 (USD) per tonne in dollar-based markets
  • Asia-Pacific: $160 (USD) per tonne

The following increase is effective March 1, 2017 or as contracts allow.

  • North America: $0.07 per pound (USD)

About Huntsman:

Huntsman Corporation is a publicly traded global manufacturer and marketer of differentiated chemicals with 2015 revenues of more than $10 billion. Our chemical products number in the thousands and are sold worldwide to manufacturers serving a broad and diverse range of consumer and industrial end markets. We operate more than 100 manufacturing and R&D facilities in approximately 30 countries and employ approximately 15,000 associates within our 5 distinct business divisions including the Pigments and Additives division that we intend to spin-off as Venator Materials Corporation.

Huntsman announces price increase for titanium dioxide

Posted in: Chemicals 02/16/2017 - 04:25

THE WOODLANDS, TX, Feb. 9, 2017 (Press Release) -Huntsman Corporation today announced global price increases for all its titanium dioxide pigments.

The following increases are effective April 1, 2017 or as contracts allow.

  • Europe, Africa, Middle East and Latin America: €235 (Euros) per tonne or $250 (USD) per tonne in dollar-based markets
  • Asia-Pacific: $160 (USD) per tonne

The following increase is effective March 1, 2017 or as contracts allow.

  • North America: $0.07 per pound (USD)

About Huntsman:

Huntsman Corporation is a publicly traded global manufacturer and marketer of differentiated chemicals with 2015 revenues of more than $10 billion. Our chemical products number in the thousands and are sold worldwide to manufacturers serving a broad and diverse range of consumer and industrial end markets. We operate more than 100 manufacturing and R&D facilities in approximately 30 countries and employ approximately 15,000 associates within our 5 distinct business divisions including the Pigments and Additives division that we intend to spin-off as Venator Materials Corporation.

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BRUSSELS, Feb. 14, 2017 (Press Release) -News has emerged that the Huntsman Corporation’s titanium dioxide manufacturing facility in Pori, Finland suffered a fire on 30thJanuary 2017, stopping production at the site until repairs can be completed.

The Finnish plant accounts for 15% of Huntsman’s global titanium dioxide (TiO2) capacity and produces much of Huntsman’s graphic arts grade pigment. The graphic arts market has specific requirements for the white pigments produced in Pori, in terms of gloss, abrasiveness etc. The impact of the fire on the supply chain into the ink manufacturing sector has been declared as Force Majeure by the main resellers, exerting severe and immediate pressure on inward costs. Double digit price increases have already been announced by the pigment suppliers as a direct consequence of the shortages in the market. Huntsman is committed to repairing the site as quickly as possible but serious shortages in the supply of graphic arts grade pigments throughout 2017 can be expected.

The industry is diligently and swiftly working to find products and alternative grades, with China offering possible relief, however the Chinese government has recently implemented mandatory production cuts and stops when pollution levels reach a trigger point, to help improve air quality. This has meant that many days’ production can be lost per month, with no financial compensation. Several TiO2 producers in China have been affected by this mandate, which only exacerbates the current supply constriction.

The manufacturers of white inks are doing what they can to keep customers supplied, but warn that users must evaluate alternative grades if they wish to continue printing.

EuPIA comments on impact of fire at Huntsman's titanium dioxide fire in Finland on ink manufacturers

Posted in: Chemicals 02/16/2017 - 03:42

BRUSSELS, Feb. 14, 2017 (Press Release) -News has emerged that the Huntsman Corporation’s titanium dioxide manufacturing facility in Pori, Finland suffered a fire on 30thJanuary 2017, stopping production at the site until repairs can be completed.

The Finnish plant accounts for 15% of Huntsman’s global titanium dioxide (TiO2) capacity and produces much of Huntsman’s graphic arts grade pigment. The graphic arts market has specific requirements for the white pigments produced in Pori, in terms of gloss, abrasiveness etc. The impact of the fire on the supply chain into the ink manufacturing sector has been declared as Force Majeure by the main resellers, exerting severe and immediate pressure on inward costs. Double digit price increases have already been announced by the pigment suppliers as a direct consequence of the shortages in the market. Huntsman is committed to repairing the site as quickly as possible but serious shortages in the supply of graphic arts grade pigments throughout 2017 can be expected.

The industry is diligently and swiftly working to find products and alternative grades, with China offering possible relief, however the Chinese government has recently implemented mandatory production cuts and stops when pollution levels reach a trigger point, to help improve air quality. This has meant that many days’ production can be lost per month, with no financial compensation. Several TiO2 producers in China have been affected by this mandate, which only exacerbates the current supply constriction.

The manufacturers of white inks are doing what they can to keep customers supplied, but warn that users must evaluate alternative grades if they wish to continue printing.

Read more

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