Axalta announces Houston plant modernization
Chemical companies are usually associated with causing environmental hazards. However, in the United States, the EPA (Environmental Protection Agency) keeps a vigilant eye on chemical companies.
In a move to support a clean environment, Axalta (AXTA) has announced the modernization of its powder manufacturing facility in Houston, Texas.
The modernization of the company’s Houston facility is expected to be completed by the end of 2018. The modernization includes the implementation of the latest processing equipment, including dosing systems that improve quality and reduce waste, water consumption, and cleaning time.
Axalta expects productivity gains from its additional implementation of packaging systems. The company confirmed that production would be at full capacity at the time of the new equipment installations.
Keith Ort, Axalta’s director of operational excellence, said, “We are excited to initiate these sustainable growth initiatives for our powder coating business.”
Axalta’s stock price
On November 11, 2016, Axalta closed at $26.19, having risen 6.8% in the week. The First Trust US IPO Index ETF (FPX), which held 0.6% in AXTA on November 11, also rose 4.1% in the week and closed at $53.01.
AXTA’s peers’ Sherwin-Williams (SHW), RPM International (RPM), and Valspar (VAL) rose 7.9%, 9.0%, and 2.6%, respectively, in the same period. AXTA’s stock price closed 4.1% lower than its 100-day moving average price of $27.32, indicating a downward trend.
Analysts expect AXTA’s 12-month target price to be $31.14, implying a potential return of ~18.9% over its closing price on November 11. On a year-to-date basis, AXTA has fallen 1.7%.