February 10, 2009 (FinancialWire) -- Huntsman Corp. (NYSE: HUN) (Current Market Cap: US$689.22 Mil.) said it has suspended work on design and feasibility studies for its planned investment in a new methylene diphenyl diisocyanate plant at its site in Rozenburg, the Netherlands, because existing production capacity is adequate to meet current demand for MDI-based polyurethanes following the downturn in global economic growth.

The design and feasibility studies, which include preliminary engineering for the planned 400,000 metric tons capacity unit, will be halted at a stage to allow quick re-engagement at a future date, according to Huntsman.

Company executive Tony Hankins said, "We plan to review market conditions on a regular basis, and when we do restart the project, we will likely benefit from lower engineering and construction costs, as the price of commodities such as steel and other construction materials decline."

Huntsman said that it will continue an internal evaluation of strategic options for the construction of a second MDI unit in China.

Huntsman Polyurethanes is a global producer of MDI, which is a key ingredient in the production of polyurethanes and also produces flexible and rigid polyethers, polyesters, polyether amines, polyurea amines, propylene oxide, polyols, fully formulated polyurethane systems and TPUs for the automotive, footwear, coatings & adhesives, construction, furniture, appliances and packaging industries.

The Woodlands, Texas-based Huntsman is a manufacturer and marketer of differentiated chemicals. Its operating companies manufacture products for a range of global industries, including chemicals, plastics, automotive, aviation, textiles, footwear, paints and coatings, construction, technology, agriculture, health care, detergent, personal care, furniture, appliances and packaging.

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