Summary

Huntsman has announcement they are seeking deals for their textile chemicals business in China which seems misplaced given the strength and importance of their polyurethane business in this region.

Analysis

Huntsman's announcement to seek deals in China is apparently very specific to the textile effects business.  As China becomes the geo-center for the textile industry, it makes sense for Huntsman to move operations and expand in this region.  However, it is somewhat surprising the focus for investing their cash war chest is on textile chemicals which make up less than 10% of EBITDA.
Perhaps a better place to target investment is the polyurethane market of Asia.  Huntsman is among the world leaders in polyurethane raw materials, specifically MDI (isocyanate) where they have a strong cost and competitive position. Polyurethane chemicals make up 40% of Huntsman's adjusted EBITDA in a market that continues to grow at a pace well above global GDP, a rarity in chemicals.  China is expected to be the highest growth market for polyurethanes coming out of the recession and Huntsman's presence in Asia could be stronger.  Granted they have plans to expand MDI plant capacity in the region, but perhaps strengthening and broadening their position in polyols and thermoplastic polyurethane makes sense as well.  It begs the question why some (or most) of the cash isn't being targeted for more aggressive moves in polyurethanes. 
Another consideration is the war chest itself.  Huntsman is currently playing out their "stalking horse" role in the Tronox titanium dioxide deal which is not yet settled and could become more pricey as the auction date nears later this year.  An improving economy will remove market uncertainty and perhaps make the deal more attractive to other suitors causing Huntsman to raise their price.  Assuming Huntsman will compete with other bidders, this could impact the amount of cash they have to spend in China.
Huntsman needs to be more clear about where and how they intent to invest cash - textile chemicals seems to be a low priority.

http://www.glgroup.com/News/Huntsmans-Move-In-China-Should-be-Polyurethane-43486.html