LyondellBasell (LYB) Buys Recycling Facility From PreZero
LyondellBasell Industries N.V. LYB completed the acquisition of mechanical recycling assets and properties, including rigid plastics recycling processing lines, from PreZero, a prominent global leader in recycling and waste management services. The acquisition encompasses the leasing of a processing facility located in Jurupa Valley, CA, boasting a production capacity of approximately 50 million pounds per year for recycled materials.
LyondellBasell expressed great enthusiasm about the acquisition, highlighting that it fortifies its U.S. presence and promises added value for its customers and the plastic recycling rates in the West Coast. Leveraging its extensive experience in plastic recycling in Europe, the company aims to establish a cutting-edge mechanical recycling facility. This initiative is geared toward meeting the escalating demand for recycled products in the U.S. market.
LyondellBasell Industries N.V. Price and Consensus
LyondellBasell Industries N.V. price-consensus-chart | LyondellBasell Industries N.V. Quote
LyondellBasell intends to utilize its newly-acquired mechanical recycling plant in California to produce post-consumer recycled resins from plastic waste feedstock. These recycled polymers will be marketed under the CirculenRecover brand, which is part of the company's Circulen portfolio, aimed at fostering the circular economy. Operations at the new facility are scheduled to commence in 2025.
The transaction aligns with LyondellBasell's commitment to establishing a circular economy for plastic, addressing plastic waste in the environment and satisfying the increasing demand from customers for sustainable products. Coupled with its previously-announced equity stake in the Cyclyx joint venture and investment in the Cyclyx Circularity Center in Houston, this latest California-based transaction will bolster LyondellBasell's competitiveness in the U.S. recycled products market.
Shares of LyondellBasell have inched up 1.5% in the past year compared with a 15.4% fall of the industry.
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LyondellBasell reported adjusted earnings of $1.26 per share in the fourth quarter, down from $1.29 in the same period last year. Net sales totaled $9.929 billion, down 2.7% from the prior-year quarter’s levels. Earnings and sales fell short of the Zacks consensus estimates. The company anticipates a sluggish first quarter in 2024 due to seasonally slow demand and economic uncertainty. However, low ethane raw material costs are expected to bolster North American Olefins & Polyolefins profits, along with modest improvements in regional demand.
Zacks Rank & Key Picks
LyondellBasell currently carries a Zacks Rank #3 (Hold).
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