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DuPont to Invest $400 Million to Increase Tyvek Capacity

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DuPont’s expansion plans

On June 4, DowDuPont’s (DWDP) Specialty Products division, which is the company’s safety and construction business, announced that it plans to invest $400.0 million to increase the capacity of its Tyvek brand at its Luxembourg facility. As part of this expansion, the facility plans to add a third line and a new building. The expansion is expected to be completed by 2021.

Tyvek is used in a variety of industries such as house wraps and personal protective apparel. In the construction industry, workers use more than 200.0 million units of Tyvek’s protective garments. With the number of infrastructure projects growing, the demand for this product is expected to increase, and the new facility could help meet this growing demand.

Rose Lee, president of DuPont’s Safety and Construction segment, noted, “Global demand for DuPont™ Tyvek® continues to grow worldwide in all of our key end-use markets.”

Lee continued, “This capacity expansion plan is a critical step in growing the Tyvek® business, maintaining our leadership in nonwoven materials, and delivering the innovation customers expect from DuPont.”

Update on DWDP’s stock movements

DowDuPont (DWDP) stock performed well in the week ended June 8. The stock gained 5.0% and closed at $69.49 at the end of the week.

The substantial gain in its stock price resulted in the trend reversal in its 100-day moving averages. DWDP traded ~1.8% above its 100-day moving average price of $68.36. However, on a year-to-date basis, the stock has declined 2.4%.

Among its peers, LyondellBasell (LYB), Eastman Chemical (EMN), and Westlake Chemical (WLK) have gained 7.0%, 17.7%, and 10.5%, respectively. DWDP’s 14-day relative strength index is 61, indicating that the stock is neither overbought nor oversold.

Investors can invest in the Materials Select Sector SPDR ETF (XLB) to hold DowDuPont indirectly. The fund gained 3.0% for the week, and it invests 22.1% of its portfolio in DowDuPont.

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