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Air Products and Chemicals’ New Plant in China Begins Operations

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Air Products and Chemicals’ new plant becomes operational

On December 5, 2017, Air Products and Chemicals (APD) announced the beginning of operations of its new plant in the Pukou Economic Development Zone (PKEDZ) in Nanjing in Eastern China. The plan to set up the new plant was announced in July 2016. This facility is just 35 kilometers away from the Nanjing Chemical Industrial Park.

Pukou Economic Development Zone, which is becoming a hub for sectors like the integrated circuit, new materials, and biomedicine will provide a great opportunity for APD to add new clients. APD already has a strong presence in the area.

Frank Yu, vice president of Eastern China, Industrial Gases, of Air Products and Chemicals, said, “We are excited to have brought this strategic milestone project on-stream in short lead time to serve both our international customer in PKEDZ and the increasing demand in Nanjing.”

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Update on APD stock

APD stock fell 0.40% and closed at $160.92 for the week ended December 8, 2017. The decline in the stock price has not impacted its 100-day moving average trend. APD traded 5.5% above the 100-day moving average price of $152.53. Analysts appear to be bullish on the stock and have recommended a target price of $173.10 over the next 12 months, which implies a return potential of 7.6% from the closing price as of December 8, 2017. On a year-to-date basis, the stock has risen 11.9%.

Investors looking for indirect exposure in APD can invest in the Materials Select Sector SPDR Fund (XLB), which has invested 5.5% of its portfolio in Air Products and Chemicals. The fund also provides exposure to DowDuPont (DWDP), Monsanto (MON), and Praxair (PX), which have weights of 23.2%, 8.0%, and 6.7%, respectively, as of December 8, 2017.

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