Huntsman may sell Aussie unit

Huntsman Corp., the fourth-largest U.S. chemicalmaker, said it will consider selling an Australian styrene petrochemicals business and will take a $50 million charge in the third quarter to write down the value of the unit.

The business, which makes products used in packaging and by auto manufacturers, has been "disappointing," Salt Lake-based Huntsman said Monday in a statement distributed by PR Newswire.

Huntsman has a capacity of about 100,000 metric tons a year of so called styrene monomer at its plant in Footscray, western Melbourne. The business has to import more than 80 percent of the petrochemical raw materials that it needs since stricter environmental regulations choked off local supplies, said Ron Van Santen, director of Perth- based chemical consultant Chemlink Pty.

"It's an operation that's marking time by any measure," Van Santen said in an interview. "Their competitive advantage is being eroded by having to import the raw material."

The business relies on a 5 percent import tariff to be competitive in the domestic market against lower-cost rivals in Asia that are located close to raw material supplies, Van Santen said. It also makes petrochemicals such as phenol and acetone using the imported benzene, he said.

"We will continue to evaluate all our strategic options for the business, which may result in additional charges in the future," Kimo Esplin, Huntsman chief financial officer, said in the statement.

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