Huntsman Corporation HUN commenced the construction of the 30-ton MIRALON carbon nanotube materials plant. This project was unveiled during Huntsman's 2021 Investor Day event and is now taking shape. Once completed, this plant will stand as one of the most extensive facilities in the Americas. It signifies a substantial stride in advancing the commercialization of MIRALON technology and marks a significant step closer to establishing a large-scale production facility.
MIRALON structural carbon products are advanced materials based on carbon nanotubes. They can be produced in various forms, including sheets, tape, yarn, or as additives and dispersions. Remarkably, these materials are thinner than human hair and possess a strength up to 25 times greater than that of steel. They are also lightweight and exhibit excellent electrical and thermal conductivity. These attributes make MIRALON carbon nanotube materials suitable for various applications across industries such as aerospace, automotive, construction and more. Some applications include electric vehicle batteries, high-performance composites, engineered thermoplastics, conductive adhesives, specialized concrete and longer-lasting tires.
Significantly, the manufacturing process yields clean hydrogen with minimal to no CO2 emissions, holding great promise within the global energy transition landscape. It can potentially lower the carbon footprint associated with various industries. The carbon footprint linked to this manufacturing process can be up to 95% less compared with the traditional steam methane reforming (SMR) process, effectively mitigating most CO2 emissions typically associated with hydrogen production. Furthermore, the potential to establish small MIRALON manufacturing units on customer sites opens up the possibility of on-site hydrogen production, further reducing carbon emissions and potentially qualifying for CO2 sequestration/capture credits.
The new plant is expected to be fully operational by the end of 2023, in line with the commitments made during the 2021 Investor Day. In the interim, Huntsman's technical and commercial teams are actively collaborating with customers interested in harnessing the innovative capabilities of MIRALON materials to develop groundbreaking solutions.
Shares of Huntsman have lost 1.5% in the past year against a 10.9% rise of the industry.
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The company, in its second-quarter call, noted that it sees stable demand for the Advanced Materials unit in the third quarter, with some modest volume decline due to typical seasonality. The division is projected to deliver similar results in the third quarter as in the second quarter, with adjusted EBITDA projected to be between $48 million and $53 million.
Huntsman Corporation Price and Consensus
Huntsman Corporation price-consensus-chart | Huntsman Corporation Quote
Zacks Rank & Key Picks
Huntsman currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the basic materials space are WestRock Company WRK and Hawkins, Inc. HWKN, both sporting a Zacks Rank #1 (Strong Buy), and Alamos Gold Inc. AGI, carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The earnings estimate for Westrock’s current year is pegged at $3.02. In the past 60 days, WRK’s current-year earnings estimate has been revised upward by 29%. WRK beat the Zacks Consensus Estimate in three of the last four quarters, with the average earnings surprise being 30.7%. The company’s shares have rallied 13.1% in the past year.
The consensus estimate for Hawkins’ current-year earnings is pegged at $3.40, indicating year-over-year growth of 18.9%. In the past 60 days, HWKN’s current-year earnings estimate has been revised upward by 32.3%. HWKN beat the Zacks Consensus Estimate in all the last four quarters, with the average earnings surprise being 25.6%. The company’s shares have rallied 57.5% in the past year.
The earnings estimate for Alamos’ current year is pegged at 43 cents, indicating a year-over-year growth of 53.6%. The Zacks Consensus Estimate for AGI current-year earnings has been revised 7.5% upward in the past 60 days. The company’s shares have risen roughly 76.3% in the past year.
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