LyondellBasell (LYB) Licenses Lupotech to Jiangsu Fenghai
LyondellBasell Industries N.V. LYB has announced that Jiangsu Fenghai High-Tech Materials Co., Ltd. (Jiangsu Fenghai) selected LyondellBasell Lupotech T high-pressure polyethylene technology for a new manufacturing plant. The Lupotech T process technology will be employed for a vinyl acetate copolymer line with a capacity of 200 kilotons per year (KTA). The new line will be built in Lianyungang, Jiangsu Province, People's Republic of China.
The Lupotech T process is the chosen technology for LDPE/EVA plant operators owing to decades of experience in high-pressure application design. The Lupotech T process is designed to attain energy efficiency through high conversion rates, plant availability and effective process heat integration.
LyondellBasell has licensed more than 15 million KTA of the Lupotech T process for LDPE/EVA manufacturing capacity in more than 70 lines across the world.
Shares of LYB have gained 10.9% over the past year compared with 0.3% rise of its industry.
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LyondellBasell, on its second-quarter call, said that it expects soft demand due to ongoing economic uncertainty to offset the usual benefits from summer seasonality in the third quarter. 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. During this period, 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 Carpenter Technology Corporation CRS, Denison Mine Corp. DNN and Veritiv Corporation VRTV.
Carpenter Technology currently carries a Zacks Rank #1 (Strong Buy). The stock has rallied roughly 56.3% 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. You can see the complete list of today’s Zacks #1 Rank stocks here.
Denison Mines currently carries a Zacks Rank #1. The stock has gained roughly 28.2% in the past year. DNN beat the Zacks Consensus Estimate in three of the last four quarters while meeting once. It delivered a trailing four-quarter earnings surprise of 75%, on average.
Veritiv currently carries a Zacks Rank #2. The stock has rallied roughly 22.8% in the past year. VRTV beat the Zacks Consensus Estimate in three of the last four quarters. It delivered a trailing four-quarter earnings surprise of 6%, on average.
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