W.R. Grace Wins New Contract with UNIPOL PP Process Technology
W.R. Grace’s new contract
On September 20, 2017, W.R. Grace (GRA) announced that it has been awarded a contract to supply its UNIPOL PP Process Technology and services to Ningxia Baofeng Energy Group for a new facility in Ningxia, China, to produce methanol to olefin. GRA didn’t disclose the financial aspects of the deal.
Interested in GRA? Don't miss the next report.
Receive e-mail alerts for new research on GRA
The new line has the capacity to produce 300 kilotons of homopolymer, random copolymers, and impact copolymers per year. It’s GRA’s 22nd UNIPOL PP Process Technology reactor license in China, taking the total capacity to 7,000 kilotons per year.
Al Beninati, president of GRA’s Specialty Catalysts segment, said, “Grace is very pleased to be the PP process technology of choice for Ningxia Baofeng’s new MTO operation. Combined with our non-phthalate CONSISTA catalysts, the state-of-the-art system will enable Ningxia Baofeng to provide a wide portfolio of quality products to their customers.”
Looking at GRA’s stock movement last week
GRA stock made small gains of 0.40% and closed at $73.05 on September 22, 2017. It underperformed the iShares US Basic Materials (IYM), which rose 1.1% for the same period. GRA’s gain resulted in the stock trading 3.6% above the 100-day moving average price of $70.54. On a year-to-date basis, GRA has risen 8.0%. However, analysts project a further upside for GRA and have recommended a target price of $82.17, which implies a return potential of 12.5% from the closing price on September 22.