Huntsman Corporation Research Paper Example | Topics and Well Written Essays - 3750 words

Huntsman Corporation - Research Paper Example Approximately the company has 12,000 employees and has operating offices in different countries worldwide. In 2012 the company generated revenue of more than US $11 billion. 43 percent of the revenue came from the production and sale of polyurethanes, 27 percent from performance products, 12 percent from pigments, 11 percent from advanced materials and 7 percent from textile effect (Huntsman, 2012). The current make-up of their business divisions has allowed the company to exceed the adjusted EBITDA of 2011 by 15 percent and make a fresh record of US $1.4 billion in 2012. Total sales volume increased by 7 percent in 2012 compared to the previous year 2011. The company has also made dramatic expansions in other continents, such as, Brazil, Asia and the Middle East physically by building operating bases and virtually reached almost every corner of the world in this era of virtual trading. The chemical industry and competitors in the industry The year 2010 was a good year in the chemica l industry when the amount of chemical output increased in the US and Europe by 5 percent and 10 percent respectively. However, growth in this industry has slowed down since then. According to estimates for the year 2013, the industry performance is projected to be sluggish. Estimated production rate of chemical in 2013 is not very favorable. Chemical production in the US in this year is projected to grow at a modest rate of 1.9 percent. Although it is higher than the average of 1.5 percent of 2012, this growth rate is considered insufficient and slow-moving by the American Chemistry Council (C&EN, 2013). Reports by The European Chemical Industry Council have predicted that chemical production in Europe will increase by 0.5 percent in the current year 2013 from last year, a figure that might be considered anemic. Looking at the demand side, the condition is still better but very exciting. In 2013, total demand for chemicals by the emerging countries in the developing world would sho w a rise. However, it would not be â€Å"enough to spark significant activity in the West† (C&EN, 2013). According to reports, chemical manufacturers in the US are expecting to face low price of natural gas as well as of raw materials for the production of chemicals in the year 2013, which would provide increased provisions for their manufacturing process. Financial instability of Europe plays a significant role in the performance of the industry and is putting â€Å"a long shadow over the chemical enterprise† (C&EN, 2013). With these uncertainties, the activities in the industry and its performance are no more predictable in the future. Huntsman Corporation is located at Houston in Texas and has a proven track record of successful performance and stalking profit levels in the international market place of the chemical industry. The international company operates its business locally through the subsidiaries established in different parts of the world. Being at the top most layers in the industry, Huntsman Corporation faces steep competition from a number of companies that have a good market share in the industry. The companies recognizable globally in this industry are Dow Chemical Company, DuPont, BASF, INEOS Group, LyondellBasell, Mitsubishi Chemical, and Roche. The top three competitors of Huntsman Corporat