All Huntsman Facilities Operating Following Hurricane Katrina
THE WOODLANDS, Texas, Sept 06, 2005 /PRNewswire-FirstCall via COMTEX/ -- Huntsman Corporation (NYSE: HUN) announced today that none of its manufacturing facilities was damaged by Hurricane Katrina and all are up and operating, including its primary North American polyurethanes facility in Geismar, Louisiana. However, the company has seen a dramatic increase in the cost of energy and many of its key feedstocks on a global basis and has also been negatively impacted by restrictions on the availability of certain raw materials as well as logistics and transportation limitations.
Peter R. Huntsman, President and CEO, commented, "We are pleased the storm did not damage our manufacturing infrastructure and are grateful that none of our employees was injured. However, we are experiencing significantly higher costs for, and limited availability of, some raw materials. Energy costs are also higher, and we must meet the challenges of the damage to the transportation and logistics infrastructure the hurricane left in its wake.
"Additionally, some of our customers in the gulf coast region sustained damage to their operations, which is impacting their ability to purchase our products. We are working to mitigate as efficiently and quickly as possible the impact of Hurricane Katrina on our operations but realize we likely will not know the full effect for some time to come."
Mr. Huntsman has sent a letter to customers informing them that the company is increasing prices on products as soon as contracts allow to reflect increasing raw material and energy costs. Where permitted in agreements, the company is also adding fuel and/or transportation surcharges to product pricing.
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 2004 revenues of $11.5 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.
SOURCE Huntsman CorporationMedia,
Don Olsen, 1-281-719-4175,
John Heskett, 1-801-584-5700,
both of Huntsman Corporation