Mumbai: Huntsman Corporation has signed an agreement with Saudi''s Basic Chemical Industries Limited to transfer majority ownership in Arabian Polyol Company (APC) – an existing joint venture of the two companies in Saudi Arabia – from BCI to Huntsman.

The joint venture, which manufactures and sells MDI-based polyurethane systems in the Gulf countries, will be re-named Huntsman APC. Financial arrangements of the deal are yet to be disclosed.

"This increase in our shareholding demonstrates Huntsman''s determination to bring new investment to emerging markets," said Nick Webster, vice president of Huntsman''s polyurethanes division in Europe and the Middle East . "Construction in the Gulf countries continues to grow at about 15 per cent per year and BCI''s local skills and leadership in chemicals will continue to be invaluable to us as we further develop and innovate in this important market," he added.

"Our joint venture with Huntsman, a world leader in MDI-based polyurethanes, has operated very successfully for more than 20 years and we warmly welcome this demonstration of Huntsman''s accelerated commitment to growth opportunities in the Gulf region," said Mike Layous, managing director of BCI.

Huntsman APC will be based at the existing Dammam site on Saudi Arabia ''s east coast, supported by a Huntsman sales office in Dubai.

Huntsman is a global leader in manufacturing and marketing of differentiated chemicals. It manufactures a variety of products for global industries, including chemicals, plastics, automotive, aviation, textiles, footwear, paints and coatings, construction, technology, agriculture, health care, detergent, personal care, furniture, appliances and packaging.

A pioneer in innovative packaging and a great achiever in integrated petrochemicals business, Huntsman today has 14,000 employees and over 75 operations in 24 countries. The company had 2006 revenues of over$13 billion from all operations.

BCI, located in Dammam, Saudi-Arabia, is a producer and distributor of more than 600 chemical products in the inorganic and specialties segments (hydrochloric acid, adhesives, polyurethanes, water treatment, resins etc.). Established in 1975 as a manufacturer of commodities and specialties chemicals for local and export markets, the group now has an annual turnover of $150 million employs around 400 workers.