LyondellBasell (LYB) Polyolefin Chosen for China Chemical Complex
LyondellBasell Industries N.V. LYB has announced that China Coal Shaanxi Yulin Energy & Chemical Co., Ltd will use LyondellBasell Spherizone, Hostalen Advanced Cascade Process (ACP) and Lupotech T technologies at its new facility.
The process technology will be employed in the construction of a 300 kilotons per annum (KTA) Spherizone polypropylene plant, a 300 KTA Hostalen ACP high-density polyethylene plant and a 250 KTA Lupotech T vinyl acetate copolymer plant in Yulin City, Shaanxi Province, China.
This licensing agreement underscores the need to license outperforming and differentiated technology in an increasingly competitive producer landscape, LYB noted. The technology selection of China Coal Shaanxi supports its ambitious growth targets for both expanding production and delivering differentiated resins to the polyolefin market in China and elsewhere.
Hostalen ACP process technology produces high-performance, multi-modal HDPE resins with industry-leading stiffness/toughness balance, impact resistance, high stress cracking resistance and process benefits for use in pressure pipe, film and blow molding applications. The Hostalen ACP facility will begin production of multi-modal HDPE products using Avant Z501 and Avant Z509-1 catalysts.
New licensees can participate in the LyondellBasell Technical Service Program. They can benefit from LyondellBasell's in-house knowledge in continuous production improvement, sustainable product development and catalyst through this program.
Shares of LyondellBasell have gained 1.6% over the past year against a 13.1% decline of its industry.
Image Source: Zacks Investment Research
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 demand growth in China 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
LyondellBasell currently carries a Zacks Rank #3 (Hold).
Better-ranked stocks in the basic materials space include The Andersons Inc. ANDE, Cal-Maine Foods Inc. CALM and Steel Dynamics Inc. STLD.
Andersons currently carries a Zacks Rank #1 (Strong Buy). 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. The company’s shares have surged 54.1% in the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.
CalMaine Foods currently carries a Zacks Rank #1. CALM beat the Zacks Consensus Estimate in each of the last four quarters, with the average earnings surprise being 131.5%. The company’s shares have jumped 3.9% in the past year.
The Zacks Consensus Estimate for Steel Dynamics’ current-year earnings has been revised upward by 4.3% in the past 60 days. It currently carries a Zacks Rank #1. Steel Dynamics delivered a trailing four-quarter earnings surprise of roughly 6.5%, on average. STLD shares are up around 2.5% in a year.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Steel Dynamics, Inc. (STLD) : Free Stock Analysis Report
The Andersons, Inc. (ANDE) : Free Stock Analysis Report
Cal-Maine Foods, Inc. (CALM) : Free Stock Analysis Report
LyondellBasell Industries N.V. (LYB) : Free Stock Analysis Report
