Huntsman(US:HUN)2021-02-12 19:16Manufacturing and Production - Huntsman Corporation operates three major polyurethane manufacturing facilities in the U.S., Europe, and China, along with 30 strategically located downstream facilities[43]. - The total annual production capacity of MDI across various facilities is 2,921 million pounds, with Geismar, Louisiana having a capacity of 1,060 million pounds and Rotterdam, The Netherlands at 1,036 million pounds[61]. - The Performance Products segment has a total production capacity of 1,039 million pounds for amines and 571 million pounds for maleic anhydride across its manufacturing locations[83]. - The company operates 10 manufacturing facilities globally, leveraging integrated petrochemical complexes for cost efficiency[85]. - The joint venture AAC in Saudi Arabia has an annual capacity of approximately 70 million pounds for ethyleneamines, consolidating its results in financial statements[86]. - The company operates 11 synthesis and formulation production sites across Asia, Europe, and the Americas, ensuring efficient service to its global customer base[116]. - Approximately 63% of the base liquid resins produced by Huntsman Corporation are used internally, with the remainder sold into the merchant market[42]. - Approximately 63% of the BLR produced is consumed internally, allowing for increased utilization of production plants and reduced overall production costs[107]. Product Offerings and Market Position - The company produces over 2,500 distinct MDI-based polyurethane products, which are increasingly replacing traditional materials across various applications[44]. - Huntsman Corporation's strategy focuses on growing its differentiated product offerings, including specialty MDI and polyols, which tend to offer higher margins and lower volatility[50]. - Demand for specialty polyols is growing at a rate comparable to MDI consumption, indicating a strong market for these products[53]. - The company is the largest global producer of polyetheramines and maleic anhydride, with significant market shares in various specialty markets[71][72]. - The company competes primarily on product performance and customer support in the polyurethane chemicals market, differentiating itself from competitors like BASF and Dow[69]. - The company maintains a competitive position in the aerospace market through specialty resins and formulations backed by customer-specific certifications[110]. - The company focuses on high-quality specialty dyes, differentiating itself from competitors primarily focused on commodity dyes[119]. Joint Ventures and Strategic Partnerships - The company has entered into a joint venture with Sinopec to build a world-scale PO/MTBE plant in Nanjing, China, holding a 49% interest in the venture[45]. - The SLIC joint venture in Caojing, China has a total production capacity of 1,280 million pounds per year of MDI, with HPS entitled to 825 million pounds[65]. - The company holds approximately 78% of the nitrobenzene and aniline production capacity in the Rubicon LLC joint venture, which enhances scale and reduces costs[64]. Research and Development - The company has approximately 2,960 unexpired patents and 1,040 pending patent applications, highlighting its commitment to intellectual property[134]. - Advanced Materials segment has received numerous awards from the JEC Composite Association for innovation in the composite industry, emphasizing its competitive edge[95]. Environmental and Regulatory Factors - Capital expenditures for environmental, health, and safety (EHS) matters totaled $28 million in 2020, with an estimated $47 million for 2021[145]. - The EU has set a binding target to reduce domestic GHG emissions by at least 40% below the 1990 level by 2030[149]. - The EU aims to increase the share of renewable energy to at least 32% of its energy consumption by 2030[149]. - The European Commission proposed to increase the GHG emission reduction target to at least 55% in September 2020[149]. - Domestic operations may face increased capital and operating costs due to EPA's GHG regulations[151]. - Existing GHG legislation has not significantly increased costs for most sites, but future restrictions may[152]. - Increasing GHG concentrations may lead to adverse physical effects, impacting assets and operations[153]. Financial Performance and Market Risks - The company is exposed to market risks, including changes in interest rates, foreign exchange rates, and commodity prices[332]. - The company engages in transactions to manage market risks, including derivative instruments[332]. - In 2020, approximately 62% of sales were generated from around 1,400 direct customers, while 38% came from distribution partners[125]. Workforce and Safety - The company employs approximately 9,000 associates worldwide, with about 2,000 in the U.S. and 7,000 in other countries[139]. - The OSHA Total Recordable Injury Rate (TRIR) improved from 0.49 in 2019 to 0.28 in 2020, indicating enhanced safety performance[140]. Customer Engagement and Support - Huntsman Corporation markets its polyurethane chemicals to over 7,000 customers in more than 90 countries, emphasizing customer support and technical service[57]. - The company operates 12 technical services laboratories globally, enhancing customer service speed and flexibility[128].