Eastman (EMN) Partners Nord Pal Plast for Feedstock in France
Eastman Chemical Company EMN has announced a long-term arrangement with Nord Pal Plast SA, part of Dentis Group. Dentis will offer Eastman 30,000 metric tons of rejected PET post-consumer waste annually via mechanical recycling operations in France and Italy. These materials, which now lack a circular solution, will be recycled at Eastman's molecular recycling plant in France.
This alliance emphasizes the essential and complementary nature of both mechanical and molecular recycling processes in achieving a more sustainable future. By integrating their experience and resources, both companies look to achieve genuine circularity in the recycling process, maximizing the value of waste materials while lowering environmental impacts.
This partnership helps to provide a long-term value platform for reducing PET waste, with mechanical and chemical recycling serving as effective complements to European plastic recycling rates. This collaboration reflects Eastman's common goal of decreasing plastic waste and strengthening the circular economy.
This agreement secures more than 70% of the feedstock for the company's future recycling plant in Normandy, including items often rejected by mechanical recyclers, and confirms its commitment to sustainable solutions.
EMN’s molecular recycling facility in Normandy is set to become the biggest material-to-material molecular recycling plant globally. This significant investment in France is an important milestone in Eastman's commitment to sustainable solutions, bolstering the company's efforts to create a more circular economy.
Eastman's molecular recycling technologies enable the breakdown of hard-to-recycle waste into molecular building blocks. These building components are then reassembled to produce high-quality materials while maintaining performance. Eastman's approach allows for the potentially unlimited worth of materials, keeping them in production cycle after cycle.
Shares of Eastman have lost 2.1% over the past year compared with a 17.2% decline of its industry.
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The company, on its fourth-quarter call, stated that it expects volume increase due to the absence of client inventory destocking in its end markets, with the notable exception of medical and agriculture, which will continue to destock in the first quarter of 2024.
EMN anticipates minor primary demand to increase in several stable end industries, with discretionary end markets remaining steady. It expects to gain from the revenues and earnings generated by its Kingsport methanolysis facility. Taking all of this into account, the company expects 2024 EPS to range between $7.25 and $8.00, with cash from operations of around $1.4 billion.
Eastman Chemical Company Price and Consensus
Eastman Chemical Company price-consensus-chart | Eastman Chemical Company Quote
Zacks Rank & Key Picks
Eastman currently carries a Zacks Rank #3 (Hold).
Better-ranked stocks in the basic materials space include United States Steel Corporation X, Carpenter Technology Corporation CRS and Alpha Metallurgical Resources Inc. AMR.
United States Steel carrying a Zacks Rank #1 (Strong Buy). X beat the Zacks Consensus Estimate in each of the last four quarters, with the average earnings surprise being 54.8%. The company’s shares have soared 64.1% in the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.
Carpenter Technology currently carries a Zacks Rank #1. CRS beat the Zacks Consensus Estimate in three of the last four quarters while matching it once, with the average earnings surprise being 12.2%. The company’s shares have soared 31% in the past year.
The Zacks Consensus Estimate for AMR’s current-year earnings has been revised upward by 69% in the past 60 days. It currently carries a Zacks Rank #1. AMR delivered a trailing four-quarter earnings surprise of roughly 9.6%, on average. AMR shares are up around 119.8% in a year.
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