IFF Commissions a Fragrance Ingredient Plant in China
IFF’s new plant in China
On October 25, International Flavors and Fragrances (IFF) announced that it’s commissioning a new 165,000-square-meter fragrance ingredient plant in Jiande, in China’s Zhejiang Province. The new plant is considered to be environmentally friendly. IFF claims that the new facility will consume less water per kilo of production of IFF’s operations.
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With the commission of a new plant, IFF said its existing plant would be used for training, and it expects to train 100 Chinese employees by 2018. China is IFF’s third-largest employee base.
Andreas Fibig, IFF’s chairman and CEO, said, “IFF has a legacy of innovation and excellence in fragrance ingredients. This long-planned investment underscores our continued commitment to providing our customers with the best possible products and service.Fully aligned with our strategic imperative to be our customers’ partner of choice, it does so as it furthers our quality, safety, and sustainability goals through the innovative use of technologies and the expertise of our people and partners.”
IFF’s stock performance
IFF stock fell 1.2% and closed at $148.56 for the week ended October 27. Despite the decline in the stock price, IFF traded 3.60% above the 100-day moving average price of $143.37, implying an upward trend in the stock. On a year-to-date basis, the stock has returned 26.10%. The stock is trading 1.70% above the target price provided by analysts. However, the 14-day relative strength index of IFF indicates that the stock is neither overbought nor oversold.
IFF underperformed the Vanguard Materials ETF (VAW), which returned 1.70% for the week ended October 27. The fund has invested 1.30% of its portfolio in IFF. The other holdings of the fund include DowDuPont (DWDP), Monsanto (MON), and Air Products and Chemicals (APD) with weights of 18.40%, 5.80%, and 4.60% respectively as of October 27.