Huntsman plans to build Demilec as a global spray foam business.
This strategy will allow MDI to achieve higher profit margins in the spray foam insulation market.
This is the news that the company's CEO Peter Huntsman disclosed in a recent conversation with a stock analyst.
Huntsman acquired Demilec, a spray foam company, in March 2018.
Peter Huntsman said: 'We intend to use the company's global MDI Urethanes platform to expand the scope of business of spray foam insulation systems in the global market in Europe and Asia.'
The company has 'established sales in China, throughout Europe and Central Asia.'
Peter Huntsman added that 'in the next year or two', the entire spray foam business may bring a total of $40-50 million in EBITDA (before interest, taxes, depreciation and amortization) for Huntsman .
Peter Huntsman said that the acquisition of Demilec brings the greatest benefit to the company that will make MDI value-added.
This enabled Huntsman to convert 50 million pounds (22.7 kT) of aggregated MDI into more stable, higher-margin formulas. 'The annual growth rate reaches double digits,' he explained.