Specialty chemicals company
) has invested $135 million at a couple of its methylene diphenyl
diisocyanate (MDI) plants. The investments has been made for
boosting capacity at the Utah-based company's Geismar, La.,
facility and upgrading downstream specialties production
capability at its Rotterdam site in the Netherlands.
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Huntsman's advanced process technology will be utilized to
enhance capacity at the Geismar site by 50 kilotons (ktes) to 500
ktes. This will allow the company to leverage the significant
advantages of the site which includes access to U.S. shale gas,
strong logistics base and excellent integration. The new
capacity, which is expected come on line in 2014, will reinforce
Huntsman's place as the leading MDI producer in the Americas.
At the Rotterdam site, upgrade of downstream specialties
manufacturing capability will allow Huntsman to produce a
comprehensive range of differentiated polyurethane products for
automotive, adhesives, coatings and other applications. The unit
is expected to be operational by the end of Mar 2013.
Huntsman, which has annual sales of more than $11 billion, makes
and markets differentiated chemicals. Its makes products for an
array of industries including chemicals, plastics, automotive,
aviation, textiles, paints and coatings, construction,
technology, agriculture, health care, appliances and packaging.
In addition to the Geismar and Rotterdam sites, Huntsman operates
a third MDI facility in Caojing, Shanghai.
Huntsman, in Feb 2013, announced its fourth-quarter 2012 results.
Its adjusted earnings of 24 cents a share matched the Zacks
Consensus Estimate. Revenues edged down 0.5% year over year to
$2,619 million in the fourth quarter, but surpassed the Zacks
Consensus Estimate of $2,492 million. Higher sales across
Huntsman's polyurethanes and textile effects businesses were
masked by declines across performance products, advanced
materials and pigments franchises.
Huntsman currently carries a short-term (1 to 3 months) Zacks
Rank #3 (Hold).
Other companies in the chemical industry with favorable Zacks
Akzo Nobel NV
LyondellBasell Industries NV
). All three retain a Zacks Rank #2 (Buy).