Huntsman Corp. is likely to build a new polyurethanes systems facility in Dubai. The facility, located within the Jebel Ali Free Trade Zone, is likely to strengthen Huntsman’s distinguished downstream capabilities in the Middle East and is anticipated to finish the end of 2019.

United States: Huntsman Corp. has announced plans to build a new polyurethanes facility in Dubai, to strengthen its downstream capabilities in the Middle East.  The company already has two facilities in the Middle East, one Huntsman EMA in Turkey and HAPC which is a joint venture with the BCI Group of Companies in Saudi Arabia.

The facility is expected to be completed by the latter half of 2019. Huntsman’s investment will increase the company’s systems production capacity in the region and add a new dimension to its polyester polyol capabilities.

The president for Huntsman’s polyurethanes division claimed that the investment will serve as a strategic platform to expand business in the Middle East and North Africa and enable the company to lead the market.

According to Huntsman, the methylene diphenyl diisocyanate-based (MDI) systems market in the Middle East has delivered strong growth in the last five years and is expected to witness growth at estimated rates of 7% annually. The construction of the new facility will enable the company to supply traditional and high-end rigid polyurethane formulations from a local source, while leveraging development and production knowledge in polyester polyol and polyol blends for the fast-growing flexible foam and footwear markets, as well as pre-polymers for adhesives, coatings and elastomers applications.

Huntsman, headquartered in Texas operates in more than 75 manufacturing, R&D and operations facilities in almost 30 countries.

According to TechSci Research, the new facility in Dubai will enable Huntsman to strengthen its position in the Middle Eastern Market. The move is also expected to have a positive impact on the coatings and adhesive industry as the facility will allow the chemical maker to supply traditional and new polyurethane formula and leverage development and production knowledge, which is in turn expected to have a positive impact on Waterborne Polyurethane as well as Polyurethane Elastomers. Polyurethane has versatile applications across various end-use industries.

According to the recently published report by TechSci Research, “Global Waterborne Polyurethane Market, By Application (Coating, Sealant, Adhesive & Elastomer), Competition Forecast & Opportunities, 2013 – 2023”, Global waterborne polyurethane market is projected to grow at a CAGR of over 5%, in value terms, during 2018-2023. Increasing usage waterborne polyurethane, stringent environmental regulations, ease of manufacturing, technological advancement and high demand from petrochemical industry are some factors, that will propel the demand for waterborne polyurethane over the next five years. Europe is anticipated to remain a strong contributor in the waterborne polyurethane market in the forecast period, owing to high production WPU. APAC is expected to register faster CAGR than any other region, backed by increasing demand from developing economies India, China and Vietnam etc.

According to the recently published report by TechSci Research, “Global Polyurethane Elastomers Market, By Type (Thermoset Polyurethane Elastomer and Thermoplastic Polyurethane Elastomer), By Application (Automotive & Transportation, Footwear, Building & Construction, Industrial Machinery and Others), By Company and By Geography, Forecast & Opportunities, 2023”, Global Polyurethane Elastomers Market is projected to reach USD 16.88 Billion by 2023, at a CAGR of over 6% during the forecast period owing to the excellent properties of PU elastomers, such as heat resistance, aging resistance, huge variety, flexibility, durability and chemical resistance. Moreover, rising demand from the automotive industry, footwear and transportation industries further drives the Polyurethane Elastomers market. Based on type, the market has been categorised into Thermoset Polyurethane Elastomer and Thermoplastic Polyurethane Elastomer. The thermoset polyurethane elastomers dominated the market in 2017 and is expected to maintain its dominance over the next five years as well due to its various properties like high impact strength, greater load bearing capacity, excellent resistance to oil and grease, and high resilience. Owing to these properties they are used in specific applications such as automotive & transportation, footwear, and building & construction. The key players in the market are BASF SE, The Dow Chemical Company, Huntsman International LLC, Mitsui Chemicals, Inc., among others.

Please follow our LinkedIn and Twitter pages to get live updates on market research insights and analysis.