Huntsman to Build New Maleic Anhydride Plant

Huntsman Corporation has announced it has awarded a contract to CDI Engineering Solutions Inc. for detailed engineering and procurement in connection with the construction of its previously announced 100 million pound/year maleic anhydride plant at Geismar, Louisiana.

The Company expects to award a construction contract in early November and looks to achieve mechanical completion by 4Q 2008. The basic engineering for the new plant was completed earlier this year. The reactor, already placed on order with MAN DWE GmbH in Deggendorf, Germany, remains on track for the scheduled delivery date of April 2008. The plant's design includes sizing certain equipment to accommodate a second 100 million pound reactor to be installed at a later date.

Tom Fisher, Vice President, Maleic Anhydride and Commercial Licensing, stated, "Our position as the largest maleic anhydride producer in North America gives us a vantage point from which to plan for market demand and future opportunity. We are committed to maintaining our leadership position, and the combination of this plant with our existing domestic and European facilities will further establish Huntsman as the preferred supplier of maleic anhydride as we meet the market's demand for additional capacity."

Maleic anhydride is the building block for unsaturated polyester resins used mainly in the production of fiberglass reinforced resins for construction, automotive and marine products. It also is used in formulations for oil additives, food additives, paper chemicals, epoxies, as well as other applications. Huntsman is a leading global producer of maleic anhydride and currently has the annual capacity to produce 240 million pounds at its Pensacola, Florida facility. Huntsman also owns a 50% interest in a joint venture in Moers, Germany, that currently has an annual capacity of 130 million pounds.

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