Eastman Chemical completes DEHA capacity expansion
On June 13, Eastman Chemical (EMN) announced that it completed the debottlenecking of its DEHA (diethylhydroxylamine) unit in St. Gabriel, Louisiana. The plant’s capacity is expected to increase 15%–20%. Eastman Chemical has a monopoly in DEHA production. Eastman Chemical is the only DEHA producer in the Western Hemisphere. The company has been producing DEHA for more than 40 years. DEHA is used in water treatment and polymer production.
Debottlenecking will likely benefit Eastman Chemical by improving the plant’s production and reducing the operating cost. Kyle Irion, the US product manager for Eastman Chemical’s Care Chemicals business unit, which is part of its Additives & Functional Products operating segment, said, “With growth in demand for DEHA, our lead times had increased significantly. We take pride in our reliability and good customer service. This capacity increase will help us meet the growing needs of our customers.”
Eastman Chemical rose 1.07% and closed at $72.09 for the week ending June 14. Eastman Chemical outperformed the First Trust Materials AlphaDEX ETF (FXZ), which rose 0.1%. FXZ invests ~2.6% of its portfolio in Eastman Chemical. FXZ also provides exposure to LyondellBasell (LYB), Olin (OLN), and Huntsman (HUN) with weights of 3.5%, 2.6%, and 3.6%, respectively.
Despite the gains in Eastman Chemical’s stock price, the stock traded 7.7% below its 100-day moving average price of $78.12. Eastman Chemical’s 100-day moving average has fallen from a high of $86.53 at the beginning of the year to the current levels, which indicates weakness in the stock. On a year-to-date basis, the stock has fallen 0.3%. Eastman Chemical’s 14-day relative strength index of 49 indicates that the stock isn’t oversold or overbought.