Chemical Manufacturer Huntsman Corp. May Become Public Company

Apr. 9--PORT ARTHUR, Texas -- Huntsman Corp. could be on the verge of becoming a publicly traded company if market conditions favor it, said Peter R. Huntsman, the Salt lake City-based, privately held company's president and chief executive officer. "Our debt is a little high right now," Huntsman told members of the Rotary Club of Port Arthur. "If we could bring it down by 30 or 40 percent, it would make us investment grade." Debt reduction is a major reason for issuing shares to public buyers of stock. Another is to fuel expansion. "I'd like to see us go public by the end of the summer if the market is right," Huntsman said. "But only if the conditions are right." Huntsman operates chemical manufacturing plants in 86 installations in 24 countries. Its four plants in Jefferson County comprise the largest of its operations in North America. He speculated a public offering could be achieved through a merger. He declined to mention a possible partner. Huntsman attended the Rotary Club meeting Thursday in the Port Arthur Holiday Inn because the club recognized Hermie Bundick, the company's director of Jefferson County operations, with its award for accomplishments in one's field in this case contributing to Huntsman's success in the chemical industry. Bundick, a Beaumont native, was educated in local schools and Lamar University. He has spent his career with the former Texaco Chemical Co. and subsequently Huntsman. The Port Arthur Rotary also recognized Bundick and Peter Huntsman each with a Mack Pond Award, named for a longtime member. That recognition benefits Lamar State College-Port Arthur with scholarship money. The club also awarded a Mack Pond to Carol Triebel, formerly a Huntsman operations director in Port Arthur who now is based in Houston as vice president of Huntsman's U.S. manufacturing. The club gave a fourth Mack Pond plaque to Henry Gernhauser of Entergy Corp. Huntsman noted that his first visit to Southeast Texas occurred almost 10 years ago this month when his family's chemical company acquired the former Texaco Chemical Co. for $1.06 billion. That deal, first announced in September 1993, was completed April 21, 1994. "It's been a real roller coaster for the past 10 years," he said. The company has invested more than $650 million in the four Jefferson County plants since its acquisition and has paid about $200 million in property taxes since then, he said. "We're glad to have been here for 10 years," Our commitment is to stand tall in this community." The company was the subject of a federal investigation in the mid-1990s that resulted in the conviction of two executives on charges of falsifying emission records. The company participated in the investigation. Those convictions recently were overturned on appeal. Federal prosecutors intend to retry the case. The company also faced intense international competition as its costs increased relative to other manufacturers in Europe and Asia. The pressure resulted in local layoffs and job cuts elsewhere in 2001 to reduce costs by $125 million. Huntsman later sought a private equity partner to reduce its capital risks. Peter Huntsman also said the company has not wavered from its commitment to environmental stewardship in Jefferson County. He said the company has reduced emissions by 90 percent from its 1994 levels. HUNTSMAN TO RESTART ETHYLENE UNIT Huntsman Corp. will restart its idled ethylene manufacturing unit at the company's Port Neches plant later this year, Peter R. Huntsman, president and chief executive of the company, said Thursday. The restart should result in the rehiring of as many as 20 people, he said. Huntsman made the announcement while attending a Rotary Club of Port Arthur meeting in which a local Huntsman executive was honored. The Salt Lake City-based, privately held company idled the unit in Port Neches in November 2002 because of a worldwide glut in the chemical it produces. Ethylene is a building block in a variety of plastic-based consumer goods. Its manufacturing capacity is 400 million pounds per year. Huntsman said it had been cheaper to acquire ethylene on the world market than to make it in a company-owned plant. Now, inventories are tightening and prices are rising, he said. The restart will involve full-scale engineering starting next week. Costs are expected to be minimal because most of the upgrading was done during a 2001 maintenance turnaround.