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LyondellBasell (LYB) Technology Chosen by Dongming Shenghai

LyondellBasell Industries N.V. LYB has announced that Dongming Shenghai Co., Ltd. will use LyondellBasell Spheripol, Hostalen Advanced Cascade Process and Lupotech T technologies in its new facility.

The process technology will be used in the construction of three plants to be built in Heze City, Shandong Province, China. These are a 350 kilotons per annum (KTA) Spheripol polypropylene plant, a 400 KTA Hostalen ACP high-density polyethylene plant and a 200 KTA Lupotech T vinyl acetate copolymer plant.

The technology selection will allow Dongming Shenghai to produce durable benchmark polypropylene (PP) and high-density polyethylene (HDPE) products using the LyondellBasell Spheripol and Hostalen ACP low-pressure processes, as well as the Lupotech T vinyl acetate copolymer process technology.

The Lupotech T process is the preferred technology for LDPE/EVA plant operators due to decades of experience in high-pressure application design. The Lupotech T process is designed to ensure energy efficiency through high conversion rates, demonstrated high plant availability and effective process heat integration. LyondellBasell has licensed more than 15 million KTA of the Lupotech T process for LDPE/EVA production capacity in over 70 lines globally.

The LYB Technical Service Program is accessible to new licensees. They can benefit from LYB's in-house expertise in continuous production improvement, sustainable product development and catalyst through this program.

Shares of LyondellBasell have gained 12.7% over the past year against a 12.7% 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

LyondellBasell 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 50.9% 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 17.4% in a year.

Andersons currently carries a Zacks Rank #2 (Buy). The stock has gained roughly 36.6% 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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