LyondellBasell (LYB) Buys Stake in Plastic Waste Recycling Firm
LyondellBasell Industries N.V. LYB has announced the acquisition of a 50% stake in Rodepa Vastgoed B.V., the holding company of De Paauw Sustainable Resources ("DPSR"). The Dutch plastic waste recycling company sources, processes and trades post-consumer and post-industrial plastic packaging waste.
DPSR has production facilities in Hengelo and Enschede, the Netherlands, with an annual processing capacity equal to the amount of plastic packaging trash created by more than 1.7 million Dutch individuals each year. Founded in 1956, DPSR has built up an extensive network of plastic waste sources and grown into a leading recycler in the Benelux region.
Investing in DPSR is in sync with LyondellBasell's objective to enhance access to plastic waste feedstock, which supports its integrated hub strategy, which allows it to scale up production and expand the portfolio of CirculenRecover products.
The company acquired the 50% stake from DPSR CEO Roy de Paauw and ING Corporate Investments, the investment branch of the Dutch multinational banking and financial services corporation ING Group.
Shares of LYB have gained 16.4% over the past year compared with a 1.8% rise of its industry.
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In the third quarter of 2023, LyondellBasell expects soft demand due to ongoing economic uncertainty to offset the usual benefits from summer seasonality. Challenging petrochemical margins are being influenced by stagnant demand, volatile feedstock costs and increased capacity in North America and China.
However, the company anticipates attractive oxyfuels and refining margins, supported by summer demand for transportation fuels. LyondellBasell plans to maintain average operating rates of 85% for North American olefins and polyolefins (O&P) assets, and 75% for European O&P as well as Intermediates & Derivatives assets, in accordance with global market demand.
Despite the current challenging economic conditions and a slower recovery in China, the company remains committed to its long-term strategy. LyondellBasell is focused on advancing in Circular & Low Carbon Solutions. Its Value Enhancement Program is benefiting shareholders.
LyondellBasell Industries N.V. Price and Consensus
LyondellBasell Industries N.V. price-consensus-chart | LyondellBasell Industries N.V. Quote
Zacks Rank & Key Picks
LyondellBasell currently carries a Zacks Rank #3 (Hold).
Better-ranked stocks in the basic materials space include Koppers Holdings Inc. KOP, Carpenter Technology Corporation CRS and The Andersons Inc. ANDE.
Koppers has a projected earnings growth rate of 7.5% for the current year. It currently carries a Zacks Rank #2 (Buy). Koppers delivered a trailing four-quarter earnings surprise of roughly 21.7%, on average. The stock is up around 67.2% in a year. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Carpenter Technology currently carries a Zacks Rank #1. The stock has rallied roughly 88.4% in the past year. CRS beat the Zacks Consensus Estimate in three of the last four quarters while meeting in one. It delivered a trailing four-quarter earnings surprise of 9.8%, on average.
Andersons currently carries a Zacks Rank #1. The stock has gained roughly 51.4% 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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