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Praxair (PX) Starts New Plant in China, Shares Up 3.1%

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Industrial gas producer and supplier Praxair Inc.PX recently announced that it has started operating a new air separation plant in China. The news drove positive market reactions, as evident from a 3.1% rise in the company's share price on Oct 5.

As revealed, Praxair's new plant has a daily production capacity of 600 tons, and is located at Yangzhou Chemical Industrial Park in Jiangsu Province. The new plant serves to strengthen the company's footholds in China.

Also, Praxair has signed a long-term contract with Oxiran for supplying high-purity oxygen and nitrogen for use in manufacture of ethylene oxide derivative ("EOD") chemicals. Financial terms of the contract have been kept under wraps.

We believe such expansionary initiatives will help Praxair mete out justice to the growing preference of customers for its world-class products and services. Also, increasing application of industrial gases in manufacturing, transportation, healthcare, food & beverages, and metal fabrication industries will prove to be a boon for industrial gas producers.

However, despite bright prospects, certain near-term headwinds are weighing on Praxair's performance. The stock currently carries a Zacks Rank #4 (Sell) with a market capitalization of $20.7 billion. We believe the respective declines of 0.3% and 1.9% in the Zacks Consensus Estimates for 2015 and 2016 partly explains the stock's weak investment value.

Better-ranked stocks in the chemical diversified industry include Koppers Holdings Inc. KOP , Arkema S.A. ARKAY , and The Chemours Company CC . While Koppers Holdings sports a Zacks Rank #1 (Strong Buy), both Arkema S.A. and The Chemours Company carry a Zacks Rank #2 (Buy).

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PRAXAIR INC (PX): Free Stock Analysis Report

KOPPERS HOLDNGS (KOP): Free Stock Analysis Report

ARKEMA-ADR (ARKAY): Free Stock Analysis Report

CHEMOURS COMPNY (CC): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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