Huntsman plans to close one of its plants due to weak demand for titanium dioxide, the white colorant used in paints and plastics, according to Bloomberg. The company may spend 100 million euros ($124 million) to close a plant that produces 100,000 tons of the pigment annually.
The company acquired titanium dioxide assets from Rockwood Holdings (ROC) in October, and planned to spinoff and sell shares of the pigments business. Last week Huntsman said it will cut about 900 jobs in the unit.
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TheStreet Ratings team rates HUNTSMAN CORP as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate HUNTSMAN CORP (HUN) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, revenue growth, attractive valuation levels, notable return on equity and increase in stock price during the past year. We feel these strengths outweigh the fact that the company shows low profit margins."