Huntsman's facilities sustained little structural damage due to the monstrous storm, which plowed into the U.S. oil and chemical centers near Port Arthur and Port Neches six days ago. But its four Jefferson County, Texas, chemical manufacturing facilities - one in Port Arthur and three in Port Neches - still cannot operate because of a lack of power, water and sewer service.
"Getting those facilities running is our priority right now," said Huntsman spokesman Don Olsen.
The company has another major problem, however. Its five other plants on the Gulf Coast - in Conroe, Dayton, Chocolate Bayou and Freeport in Texas, along with Lake Charles, La. - are operational but hampered by a shortage of raw materials produced by suppliers impaired first by Hurricane Katrina and then Rita.
Unlike oil refineries that carry large stockpiles, petrochemical manufacturers such as Huntsman typically do not keep huge inventories of raw materials, said Sharon Dey, spokeswoman for the National Petrochemicals and Refiners Association in Washington, D.C.
As a result, she noted, these companies are especially vulnerable to supply disruptions.
Due to its supply and power issues, Huntsman has invoked a so-called "force majeure" clause in contracts with customers for products made at its eight Texas facilities. Olsen said the clause allows the company to escape fines or other penalties because production is limited by circumstances it cannot control.
"We're doing everything we can to deliver product to customers, but in some cases, we aren't going to be able to deliver the amounts we are contracted to deliver until our suppliers have recovered," he said.
The Salt Lake City-based chemicals conglomerate suspended operations at the nine Gulf Coast petrochemical plants last week in preparation for Hurricane Rita. About 2,000 employees work at the nine facilities that were closed.
Huntsman's plants produce ethylene, propylene and other specialty chemicals used in consumer products ranging from gasoline and toothpaste to laundry detergent.
lesley@sltrib.com
In other hurricane-related business news:
* AIR Worldwide Corp. said storm surge and flooding from Hurricane Katrina may have caused $44 billion in property damage, half in New Orleans. The storm modeling company already pegged Katrina's wind damage at $17 billion to $25 billion.
* Chevron Corp.'s shares rose Thursday as investors shook off the news that oil refinery damages caused by Hurricane Katrina wiped out $350 million of the oil company's third-quarter profit.
* Entergy Corp. said it will restore power this weekend to Exxon Mobil Corp.'s Beaumont refinery in Texas, one of seven that remained shut in the wake of Rita. The closings idled more than 10 percent of U.S. oil-refining capacity.
* U.S. farmers may face $1.5 billion in additional expenses this year because of increases in fuel and fertilizer prices caused by the hurricanes, the Department of Agriculture's chief economist told Congress.
* Gulf Coast freight companies and ports have restored some cargo service since Rita hit, as silt and debris continue to clog shipping channels and some areas lack electric power.
