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GRA to Provide Unipol Process Technology License to Grupa Azoty


Jan. 30 2018, Published 1:24 p.m. ET

W.R. Grace’s Unipol adds one more client

On January 22, 2018, W.R. Grace (GRA) announced that it has entered a contract with PDH Polska, a subsidiary of Grupa Azoty, for the license of its Unipol PP process technology. The PDH Polska is a leading manufacturer of nitrogen fertilizers and compounds, organic and inorganic chemicals, and other chemical products. Grace’s PP technology will be implemented in a new facility in Police, Poland, and is expected to have a capacity of 400 kilotons per year.

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The PP line is expected to be operational in 2022. However, GRA didn’t provide the financial details of the deal. Al Beninati, the president of the company’s catalyst business segment, said, “Grace is proud to partner with Grupa Azoty and continue our record of service to customers in Europe. The broad product capability and unparalleled flexibility of the UNIPOL PP process will enable them to deliver the resins that are in highest demand from their customers.”

Stock update

GRA stock price gained 1.1% and closed at $74.52 for the week ended January 26, 2018. GRA stock traded 2.8% above the 100-day moving average price of $72.52, indicating an upward trend in the stock. Analysts continue to be bullish on the stock and have recommended a target price of $84.90. This target implies a return potential of 13.9% from the closing price as of January 26, 2018. The latest data shows GRA’s short interest as a percentage of outstanding shares stood at 2.7%, which is higher than the previous data release. GRA’s 14-day relative strength index of 62 indicates that the stock is neither overbought nor oversold.

Investors can indirectly hold GRA by investing in the iShares U.S. Basic Materials ETF (IYM), which has invested 0.70% of its portfolio in W.R. Grace. The other holdings of the fund include PPG Industries (PPG), Eastman Chemical (EMN), and FMC (FMC), which have weights of 4.2%, 2.0%, and 1.7%, respectively, as of January 26, 2018.


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