Huntsman acquired spray foam company Demilec in April 2018 as a route to higher added for its MDI business. Simon Robinson interviewed Demilec’s Doug Brady and senior Huntsman executives and found out how things are progressing.
Huntsman has an overriding strategy in its polyurethanes business: to try and keep the amount of profit on every tonne of polyol or diisocyanate it makes the same, irrespective of market conditions for the base materials.
It wants to turn the business into something less like a roller-coaster and more like a funicular railway, which ratchets its way upwards, delivering consistency, steady growth and good returns.
This business model is built around differentiated products, with barriers to entry and the chance to use global presence and scale.
This idea bought Huntsman and Demilec together.
‘Spray foam has largely been a niche market and it is becoming a significant product in the insulation space,’ said Dough Brady, vice president, product management and technology at Demilec.
‘Huntsman bought Demilec partly to globalise the brand. There are no global spray foam brands at the moment. There is great synergy in combining Demilec’s spray foam knowledge with Huntsman’s local systems house network,’ he said.
Cold regions: hot opportunities
Brady sees Europe as the biggest opportunity for Demilec. His company has a range of HFC-free…