The Woodlands, Texas – Huntsman plans to make Demilec a global spray foam business.
The strategy will and capture the higher margins for MDI in the spray foam insulation market.
That was a message from Peter Huntsman, ceo, in conversation with stock analysts recently.
Huntsman bought Demilec, a spray foam company in March 2018.
Peter Huntsman said: ‘It’s our intention to leverage our global MDI Urethanes platform to expand spray foam insulation systems in global markets, in Europe and Asia.’
Huntsman is committed to taking the ‘the marketing, sales expertise that Demilec has to rapidly expanding markets.’
His firm already has ‘routes to market in China, throughout Europe, throughout Central Asia.’
The business could become worth between $40 and $50 m EBITDA to Huntsman as a whole ‘over the next year or two,’ he added.
Peter Huntsman said most benefit to his company from the Demilec purchase would come from adding value to MDI.
It gives his firm ‘the ability to convert 50 million pounds (22.7kT)/year of polymeric MDI into more stable, higher margin formulations. These are growing at a double-digit rate per year,’ he explained.