The First Reporter

The ongoing discussions of Huntsman Chemicals with the Gujarat based Ethylene Oxide derivatives manufacturer Laffans Petrochemicals Ltd. reached a major mile stone with a formal agreement signed for commercial manufacturing under the Huntsman technology transfer agreement.

The USD 12 billion global manufacturer and marketer of differentiated chemicals will enter the Indian surfactant Industry with locally made production scheduled to commence from December 2009. The initial production would be under supervision of the Huntsman team scheduled to commence from next week. This would be the first time that such products will be sold under the Huntsman brand name that are being manufactured in India.

This development emphasizes Laffans’ ability to offer a world class platform necessary for manufacturing, marketing, and introducing Huntsman’s high value added products for India and other export markets in Asia.

Laffans would be the face of Huntsman performance chemicals in India. This would be the first plant outside of the US and Australia where Huntsman would manufacture surfactants and cater to India and Asia Pacific.

Over last few weeks in November, 09 a high profile technical team lead by Mr. Steve Stilliard, Vice President (Asia Pacific) of Huntsman’s Performance Products division, along with Mr. Ralph DiGuilio, Director of Technology of Performance Products and other global technical managers visited Laffans facilities in India before finalizing the business cooperation agreement.

The signing of this agreement assumes more significance due to presence of Huntsman’s Global CFO for Performance Products, Mr. Duncan Emerson. An eight member global team from USA, UK, Australia and Singapore had a week long discussion and plant visits with the Laffans to further consolidate its future role and presence with the Indian partner. Laffans is being advised by ING. Bank for further possible cooperation with the Global major.

Laffans has already exported around 500 tons of material to various Huntsman sites during the last year. Of particular importance was the plant flexibility to adopt different product lines and the diverse range starting from Surfactants, Glycol Ethers, Acetates, Amines, Theic, Brake fluid etc which forms a great fit for Huntsman.