Huntsman to close Calais operations
On March 17, 2017, Huntsman (HUN) announced plans to close down the white end finishing and packaging operation of its titanium dioxide manufacturing facility in Calais, France. The closure is expected to be complete by 3Q17. HUN already closed its black end manufacturing operations in 2015.
Simon Turner, president of Huntsman’s pigments and additives division, said, “The planned closure of the Calais facility further optimizes our manufacturing network and will increase our recently announced business improvement program by $15 million to a total annual benefit of $90 million. Our priority is to communicate with our Calais employees and their representative groups, along with local community leaders, to ensure that the planned closure is safely and effectively managed.”
Huntsman stock price for the week
For the week ended March 17, 2017, HUN closed at $22.88 and rose 4.5% for the week. HUN’s stock traded 14.4% above the 100-day moving average price of $20.00, indicating an upward trend in the stock. On a year-to-date basis, HUN has moved up 19.9%. With a 14-day relative strength index (or RSI) of 61, the stock is neither overbought nor oversold. An RSI of 70 indicates that the stock is overbought, and a score of 30 suggests that the stock is oversold. HUN’s 52-week low is $14.16, and its 52-week high is $23.40.
HUN outperformed the First Trust Materials AlphaDEX ETF (FXZ), which went up 1.7% for the week ended February 17, 2017. FXZ invests 2.2% of its portfolio in Huntsman. The top holdings of the fund include Eastman Chemical (EMN), Dow Chemical (DOW), and Owens Corning (OC), which have weights of 3.3%, 3.5%, and 3.8%, respectively, as of March 17, 2017.