NEW YORK (TheStreet) -- Huntsman (HUN) shares are down 5.1% to to $21.79 on Friday after the company announced that it was planning to close one of its European plants due to weak demand for titanium dioxide pigment which is used in paints and plastics.
The company may end up having to pay up to $124 million to close the plant, which produces 100,000 tons of titanium dioxide annually, company CFO Kimo Esplin said.
Closing the plant will eliminate 900 jobs and the company's pigment business is expected to break even this year, according to Bloomberg. The company will be able to recover from the cost of the closure in two to three years, Esplin said.
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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."