Supply of maleic anhydride has become very tight over the past two years, with factories running at close to capacity, and demand from the biggest end-user markets – construction, automobiles and marine products – growing at rapid rates.

Huntsman, which is headquartered in Salt Lake City, Utah, is one of the worlds largest producers of the compound, with approximately 300 million pounds in combined annual capacity between a wholly owned plant in Pensacola, Fla., and its interest in a 50-50 joint venture in Moers, Germany. The company had said previously that it planned to build another plant, but did not disclose the location until last week. Huntsman said it chose a fast-track implementation model that enabled a start-up date in the third quarter of 2008.

We want to move as quickly as possible to respond to our customers growing requirements and to help ensure the long-term supply of maleic anhydride in North America, Vice President Tom Fisher said. We are confident that the Geismar site will provide the most attractive economics for the plant due to the feedstock availability and the ability to leverage off existing Huntsman infrastructure currently located at the Geismar site.