Huntsman Corporation HUN has opened a multi-purpose facility at the Amata Vietnam Industrial Park near Ho Chi Minh City. The new facility is a greenfield investment and will house the company's polyurethanes and advanced materials businesses.
The facility comprises manufacturing, R&D capabilities, a technical service center, warehouse and distribution space and a commercial office.
In addition to the facility, Huntsman has a distribution warehouse in the Dong Nai Province of Vietnam. It also has a site in Hanoi, which offers technical service containing warehouse, distribution space and a commercial office.
Huntsman, at the new facility, will make formulated systems for the footwear and automotive markets, simulated wood for the furniture market and rigid insulation foam used in construction and cold chain applications. These products will be mainly consumed in Vietnam. The facility will allow the company to collaborate more effectively with customers in Vietnam, which is among the rapidly growing countries in Asia Pacific.
Huntsman's shares have rallied 21.8% over the past year, outperforming the 7.2% growth of the industry it belongs to.
Revenues at the company's Polyurethanes and Advanced Materials segments increased year over year on the back of higher average selling price and sales volumes in the second quarter.
Huntsman stated that growth in its Polyurethanes business continues on the back of good supply and demand fundamentals. The company is committed toward cashing in on opportunities in its downstream businesses while creating shareholders' value.
Huntsman, earlier this year, acquired Demilec from an affiliate of Sun Capital Partners, Inc. According to Huntsman, integration of Demilec into its Polyurethanes business delivers considerably higher and stable margins along with offering significant synergies by pulling large quantities of upstream polymeric MDI into specialized spray foam systems.
Huntsman Corporation Price and Consensus
Huntsman Corporation Price and Consensus | Huntsman Corporation Quote
Zacks Rank & Other Stocks to Consider
Huntsman is a Zacks Rank #1 (Strong Buy) stock.
Other top-ranked companies in the basic materials space are Celanese Corporation CE , Air Products and Chemicals, Inc. APD and LyondellBasell Industries N.V. LYB .
Celanese has an expected long-term earnings growth rate of 10% and a Zacks Rank #1. The company's shares have rallied 18.4% in the past year. You can see the complete list of today's Zacks #1 Rank stocks here.
Air Products has an expected long-term earnings growth rate of 16.1% and a Zacks Rank #2 (Buy). Its shares have gained 7.7% in a year's time.
LyondellBasell has an expected long-term earnings growth rate of 9.5% and carries a Zacks Rank #2. The stock has rallied 28.2% in a year.
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