Eastman Partners With Huafon to Build New Yarn Facility in China

Eastman Chemical Company EMN recently entered into a strategic partnership with Huafon Chemical to establish a joint manufacturing facility in China. The facility will focus on localized production and product innovation of Eastman Naia cellulose acetate filament yarns.

China, being the world’s largest textile supply-chain hub, this partnership further deepens EMN’s market presence in the country while enabling a swift supply-chain response to growing market demand for sustainable textile solutions.

The partnership is set to benefit Eastman by increasing its production capacity and enhancing the innovation and product development capabilities of Naia yarns. It will align with Eastman’s goal of making sustainable textiles accessible to a broader market.

The partnership will leverage local advantages along with international resources to build a fully localized chain integrated with technological innovation, product development, production and services. The joint efforts will promote sustainable growth in the textiles industry while allowing Eastman to respond more efficiently to regional market demands.

EMN stock has lost 32.1% over the past year against the industry’s 20.6% decline.

Eastman, on the second-quarter earnings call, noted that it is seeing a challenging global macroeconomic environment entering the second half. Customers are increasingly cautious due to a changing tariff environment and soft demand. The company expects to gain from the ramp-up of cost-reduction initiatives and higher revenues from its Kingsport methanolysis facility. EMN expects third-quarter adjusted earnings to be roughly $1.25 per share. It also expects to generate an operating cash flow of around $1 billion for the full year.

EMN’s Zacks Rank & Key Picks

EMN currently carries a Zacks Rank #5 (Strong Sell).

Some better-ranked stocks in the Basic Materials space are Nutrien Ltd. NTR, Carpenter Technology Corporation CRS and CF IndustriesHoldings, Inc. CF. While NTR currently sports a Zacks Rank #1 (Strong Buy), CRS and CF carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for NTR’s current-year earnings is pegged at $4.30 per share, implying a 23.92% year-over-year surge. Its earnings beat the Zacks Consensus Estimate in one of the trailing four quarters while missing the rest. Its shares have gained 24.7% in the past year.

The Zacks Consensus Estimate for CRS’ fiscal 2025 earnings is pegged at $9.36 per share, indicating a rise of 25.13% from year-ago levels. The company’s earnings beat the consensus estimate in each of the trailing four quarters. Its shares have soared 67.4% in the past year.

The Zacks Consensus Estimate for CF’s current-year earnings is pegged at $8.10 per share, indicating a 20.18% year-over-year increase.Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with an average surprise of 25.29%. CF’s shares have gained 10% in the past year.

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This article originally published on Zacks Investment Research (zacks.com).

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