Carrier Selects Chemours’ Opteon XL41

Chemours to supply refrigerants to Carrier

On December 19, Chemours (CC) announced that Carrier selected its refrigerant R-454B, which is sold as “Opteon XL41.” These are lower GWP (Global Warming Potential) refrigerants. Carrier will replace R410-A in ducted residential and light commercial packaged products to be sold by Carrier in North America from 2023. However, Chemours didn’t disclose any of the deal’s financial aspects.

Carrier Selects Chemours’ Opteon XL41

XL41 has a GWP of 466. In comparison to R-410A, XL41 reduces the carbon dioxide emissions by 78% and is more energy efficient. As the regulatory norms get more stringent, XL41 will help Carrier meet the required future regulations.

Diego Boeri, the vice president of Chemours’ Fluorochemicals business, said, “As the world moves toward more environmentally sustainable solutions, equipment manufacturers are searching for lower GWP options that will meet future regulations and can deliver on performance. Opteon XL41 achieves just that. We are thrilled to work in collaboration with Carrier to bring about transformative change for the air-conditioning industry. Chemours is committed to delivering world-class technology through responsible chemistry that reduces impact on global climate change.”

Chemours’ stock price

For the week ending December 21, Chemours’ stock price declined ~6.0% and closed at $26.24. The continued decline in Chemours’ stock price caused the stock to trade 28.10% below the 100-day moving average price of $36.50. Chemours’ 100-day moving average price has fallen from a high of $53, which indicates prevailing weakness in the stock. On a YTD (year-to-date) basis, Chemours stock has declined 47.6%. W.R. Grace (GRA), Tronox (TROX), and PPG Industries (PPG) have declined 13.4%, 64.75%, and 18.5%, respectively.

Chemours’ 14-day RSI (relative strength index) of 35 indicates that the stock is close to moving into an oversold position on a temporary basis.

Chemours outperformed the PowerShares S&P Spin-Off Portfolio ETF (CSD), which declined 7.8% for the week. CSD has invested 3.0% of its portfolio in Chemours as of December 21.