HUNTSMAN
New European polystyrene capacity / 8% marketshare in Europe / When into PP?
The commissioning of the newest European polystyrene plant was celebrated on April 7th by Huntsman Chemical Company Ltd (Carrington, Urmston, Manchester, M31 4AJ, GB). In speaking to an invited audience of 500, Jon M. Huntsman, chairman and CEO of the global Huntsman group (HQ: The Huntsman Group, 2000 Eagle Gate Tower, Salt Lake City, Utah, 84111-1098, USA) emphasized the significance of the 50,000 t/y capacity expansion at Carrington (raising total installed capacity to 130,000 t/y) in relation to Huntsman's total world polystyrene business (US-capacity: 540,000 t/y). Since 1984 Huntsman has moved into sixth place in Europe, with an 8% market share (leader in the USA). $ 20m has been invested in the new plant, called "Line Six". It is the most modern in the world, and was described by Jon Huntsman as "low cost, high profit".
The plastics industry was in a deep recession at the time the investment decision was taken. It is thanks to a European, Dirk J. Biesterfeld, that Jon M. Huntsman (who is celebrating 25 years in the plastics business this year) put his hand in his pocket and made the investment. The Hamburger trading company Biesterfeld committed themselves to take half of the new Carrington capacity – that is 25,000 tonnes – for a period of five years. Now of course the managers of Biesterfeld Plastic GmbH (Ferdinandstr. 41, D-20095 Hamburg) are gleefully selling 40,000 t/y Huntsman-PS throughout Europe, and could sell even more, if it were available.
Jon M. Huntsman is anticipating "a tremendous future for polystyrene". At the same time he warned of the danger of excessively rapid and uncontrolled capacity increases: "Only when we expand cautiously, will we be able to hold PS prices at their present level". In Huntsman's opinion, less caution is needed with polypropylene in view of its higher growth rate. For this reason he would like to enter the European PP business; intensive discussion about possible acquisitions have already taken place. Huntsman wouldn't comment further about this.
READER SERVICE: Company Report Huntsman (English): PIE-No. 37553.
The plastics industry was in a deep recession at the time the investment decision was taken. It is thanks to a European, Dirk J. Biesterfeld, that Jon M. Huntsman (who is celebrating 25 years in the plastics business this year) put his hand in his pocket and made the investment. The Hamburger trading company Biesterfeld committed themselves to take half of the new Carrington capacity – that is 25,000 tonnes – for a period of five years. Now of course the managers of Biesterfeld Plastic GmbH (Ferdinandstr. 41, D-20095 Hamburg) are gleefully selling 40,000 t/y Huntsman-PS throughout Europe, and could sell even more, if it were available.
Jon M. Huntsman is anticipating "a tremendous future for polystyrene". At the same time he warned of the danger of excessively rapid and uncontrolled capacity increases: "Only when we expand cautiously, will we be able to hold PS prices at their present level". In Huntsman's opinion, less caution is needed with polypropylene in view of its higher growth rate. For this reason he would like to enter the European PP business; intensive discussion about possible acquisitions have already taken place. Huntsman wouldn't comment further about this.
READER SERVICE: Company Report Huntsman (English): PIE-No. 37553.
30.04.1995 Plasteurope.com [20803]
Published on 30.04.1995