<b>Huntsman North America MDI project is expected to be completed in June this year</b>_morpholine_methylmorpholine

<b>Huntsman North America MDI project is expected to be completed in June this year</b>

On April 28, 2022 local time, Huntsman Convene the Earnings Conference Call for the first quarter of 2022. The editor translates and summarizes some content about polyurethane/MDI at the conference by Peter Huntsman, CEO of Huntsman:

Huntsman Polyurethanes division (2022) first quarter Adjusted EBIT was $224 million, up 8% from $207 million a year earlier. Revenue increased by 30%, mainly due to price increases implemented by Huntsman to offset a significant increase in raw material and logistics costs. Huntsman's sales rose 4% year-over-year.

Compared to the first quarter of 2021, Sales in the Americas rose 7 percent, followed by Asia and Europe at 4 percent and 2 percent, respectively. Huntsman expects the Americas to remain Huntsman's strongest region, driven by construction-related markets and overall economic strength.

In Europe, the Huntsman is closely monitoring the situation in Ukraine and impact on the overall economy. While visibility in this area is difficult, so far Huntsman still sees construction and adhesives corresponding to the coatings market driven by steady demand. In Asia, particularly China, Huntsman expects that government-mandated lockdowns/containment measures will have a negative short-term impact as the country fights the COVID-19 outbreak.

Building platform:

Despite ongoing logistics and supply issues, Huntsman The building solutions (HBS), in the first quarter of this year, revenue of about 160 million US dollars, an increase of nearly 50% year-over-year, mainly due to strong pricing initiatives. Consumer sustainability trends, combined with high global energy prices, remain positive for Huntsman Building Solutions. Strategically, Huntsman will continue to increase the value of polymeric MDI in spray foam insulation systems.

Car platform:

Our confidence in automotive platforms continues to be undermined by global chip shortages and Impact of supply chain issues. However, for the first time in several quarters, Huntsman posted year-over-year growth. This growth was driven by modest improvement (in the industry), good year-over-year growth and continued product substitution. Revenue was up 18% year-over-year, and volume was up 4% year-over-year. Huntsman will continue to invest in automotive platforms to bring innovative solutions to customers.

Elastomer Industry:

Elastomer is Huntsman's third global Platforms, both industrial and consumer. Huntsman will continue to increase prices to offset inflation, with total revenue up 28% from the first quarter of 2021. Industrial remains the business's strongest source of value and demand, with good growth in the Americas. Huntsman chose to eliminate some footwear-related revenue in Asia, believing that it did not realize value in a highly inflationary environment.

The core of Huntsman's polyurethane business strategy , still on "value over quantity," which will drive Huntsman's decisions about how and where to invest and supply. The new MDI separation unit located in Geismar, Louisiana, is one of Huntsman's strategic investments, which will further upgrade Huntsman's US portfolio. It will be completed in January and will start to produce in the second half of this year.

As previously disclosed, once the investment project is fully launched And running, the project is expected to add $45 million in annual EBITDA to segment performance by 2024.

As we told you at last year's investor day That way, since the propylene oxide profity: wait line"> The slowdown in new home construction is accompanied by an expansion in renovations. People decide not to invest in new homes, and often they renovate existing homes. To be clear, this is not a one-for-one shock Impact.

" But at the same time, if you assume a new project It's down 10%, and you're not going to see our volume drop 10%. That should be mitigated by demand from refurbishment."

Additional Impact on Huntsman Polyurethanes North American Housing Business , a large part of which is the spray foam business, which continues to do well for Huntsman as energy prices rise. Huntsman is producing as much as possible, but will still be limited by the availability of some blowing agents and catalysts, so Huntsman has a backlog of about 5 weeks.

In housing, the Huntsman continues to see Strong demand in applications, construction materials, etc. We are cautious about the economic slowdown. After all, the housing sector does have some volatility when you look at things like new home sales, mortgage applications and building permit numbers.

But at the same time, Huntsman will also carry out environmental protection Retrofits and upgrades will continue to take market away from other products and competing applications. So this is a very important area for Huntsman, and Huntsman will continue to invest in this area.

Whether the European MDI operating rate will be affected by the current Declining due to geopolitical influence?

"Looking across Europe, Huntsman's products are still in short supply ...we're going to continue to see strong demand. $30 oil, that's an exorbitant price, and that's down significantly from a month ago, when it was more than double that. Huntsman continues to work on cost in Rotterdam, the Netherlands to ensure that prices can be passed, demand is maintained, and focus on new applications. I think we are doing well in Europe. This is the lowest margin in our MDI business, Because of raw material costs in this area. I hope that’s not the case, but I think it might be, at least in the near future.”

Huntsman North America MDI project is expected to be completed in June this year

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