LyondellBasell (LYB) to Build Advanced Recycling Plant in Germany
LyondellBasell Industries N.V. LYB has announced the final investment decision to construct its first industrial-scale catalytic advanced recycling demonstration plant in Wesseling, Germany. This plant, which will use LyondellBasell's proprietary MoReTec technology, will be the first commercial scale, single-train advanced recycling plant to convert post-consumer plastic waste into feedstock for the manufacturing of new plastic materials with net zero GHG emissions.
The new plant, with an expected annual capacity of 50,000 tons, is intended to recycle the quantity of plastic packaging waste created by nearly 1.2 million German individuals each year. The project is expected to be finished by the end of 2025.
The LYB MoReTec demonstration plant will bridge the recycling gap for difficult-to-recycle plastics, such as mixed or flexible materials, which are now destined for landfill or incineration. The majority of the sorted processed feedstock will be supplied by Source One Plastics, a joint venture created in October 2022 by LyondellBasell and 23 Oaks Investments.
The advanced recycled feedstock generated by the MoReTec facility will be used to make polymers offered by LYB under the CirculenRevive product line for usage in a variety of applications, including medical and food packaging.
Shares of LyondellBasell have gained 11.1% over the past year against a 14.6% decline of its industry.
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The company, on its third-quarter call, said that it anticipates seasonally lower demand across most industries in the fourth quarter. Higher feedstock costs, new industry capacity and slowing Chinese demand growth continue to put pressure on global olefins and polyolefins margins. Following the end of the summer driving season, oxyfuels and refining margins are projected to fall.
Nonetheless, oxyfuel margins are expected to remain significantly higher than historical averages. LyondellBasell plans to operate its assets in line with market demand during the fourth quarter, with average operating rates of 85% for North American olefins and polyolefins (O&P) assets, 75% for European O&P assets and 70% for Intermediates & Derivatives assets.
LyondellBasell Industries N.V. Price and Consensus
LyondellBasell Industries N.V. price-consensus-chart | LyondellBasell Industries N.V. Quote
Zacks Rank & Key Picks
LYB currently carries a Zacks Rank #3 (Hold).
Better-ranked stocks in the basic materials space include Denison Mines Corp. DNN, Axalta Coating Systems Ltd. AXTA and The Andersons Inc. ANDE.
Denison Mines has a projected earnings growth rate of 100% for the current year. It currently carries a Zacks Rank #1 (Strong Buy). DNN delivered a trailing four-quarter earnings surprise of roughly 225%, on average. The stock is up around 50.8% in a year. You can see the complete list of today’s Zacks #1 Rank stocks here.
Axalta has a projected earnings growth rate of 5.4% for the current year. It currently carries a Zacks Rank #1. AXTA delivered a trailing four-quarter earnings surprise of roughly 6.7%, on average. The stock is up around 20.5% in a year.
Andersons currently carries a Zacks Rank #2. The stock has gained roughly 35.6% in the past year. ANDE beat the Zacks Consensus Estimate in each of the last four quarters. It delivered a trailing four-quarter earnings surprise of 64.4%, on average.
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