Page 49 - Plastics News June 2017

BUSINESS NEWS

Huntsman and Clariant to merge Honeywell partners with

with all-stock transaction Wison Engineering for MTO

untsman Corporation and Clariant announced that technologies and EPC services

Htheir Boards of Directors unanimously approved a oneywell UOP has signed a partnership agreement
definitive agreement to combine in a merger of equals Hwith China's Wison Engineering Ltd. to jointly
through an all-stock transaction. The merged company provide methanol-to-olefin (MTO) technologies and
will be named Huntsman Clariant. On a pro forma 2016 engineering, procurement and construction (EPC)
basis, the combination of both companies will create a services to customers outside of China.
leading global specialty chemical company with sales of
approximately US$13.2 bln, an adjusted EBITDA of US$2.3 Honeywell UOP's Advanced MTO technology converts
bln and a combined enterprise value of approximately US$20 methanol from coal or natural gas into the olefins
bln at announcement. The combined entity will benefit that form the basis for many types of plastic resins,
from each other’s strengths. It will have a significantly films and fibers. It is a rapidly growing technology in
improved growth profile in highly attractive end markets regions rich in coal or natural gas but poor in crude oil,
and geographies. Huntsman Clariant will leverage shared and that have high demand for plastics. As a leading
knowledge in chemical EPC service
providers in China,
sustainability Wison Engineering
and boast a is develo ping
much stronger opportunities for
joint innovation the MTO technology,
platform. This par ticular ly in
will enable the countries included in
development of China's Belt and Road Initiative, covering the historic
new products in trading route that stretches from China, through central
order to deliver Asia to Western Europe. The agreement combines
superior returns Honeywell UOP's advanced process technologies with
and drive Wison's strong EPC service capability, allowing them
s har eho l der to help customers further improve olefin production
value. capacity while reducing energy consumption and

“This is the perfect deal at the right time. Clariant production costs.
and Huntsman are joining forces to gain much broader "We are excited to work with Honeywell UOP to bring
global reach, create more sustained innovation power the Advanced MTO technology to customers in countries
and achieve new growth opportunities,” said Hariolf that traditionally have traded with China for centuries,"
Kottmann, CEO of Clariant. “This is in the best interest said Li Yansheng, Chief Engineer of Wison Engineering.
of all of our stakeholders. Peter Huntsman and I share the "MTO is an innovative technology that enables coal and
same strategic vision and I look forward to working with gas-rich regions in Russia, Central Asia, the Middle East,
him.” Peter R. Huntsman, President and CEO of Huntsman, Southeast Asia, and as far as Europe and Africa, to make
commented: “I could not be more enthusiastic about this plastics from their own coal and natural gas. We have a
merger and look forward to working closely with Hariolf long history of cooperation with Honeywell and the close
Kottmann, a man I have admired and trusted for the cooperation between Wison Engineering and Honeywell
past decade. we will create a global leader in specialty UOP on overseas offerings is an important milestone,"
chemicals with a combined balance sheet providing he added. "Together we can provide our customers with
substantial financial strength and flexibility.” the best-in-class MTO technologies and project counsel.

49 June 2017 | Plastics News