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LyondellBasell (LYB) Uses Plastic Waste for Polymer Production

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LyondellBasell Industries N.V. LYB recently announced the manufacturing of quality polymers from raw materials derived from plastic waste at its Wesseling, Germany facility.

The thermal conversation of plastic waste produces raw material, which is converted into ethylene and propylene at the LyondellBasell manufacturing site. This is then processed into polypropylene (“PP”) and polyethylene (“PE”) in the downstream units for plastics production.

The raw material derived from plastic waste is used for the manufacturing of plastic materials made from renewable-based raw materials such as used cooking oil, which facilitates the reduction of CO2 over the product life cycle and lowers the use of fossil-based raw materials.

The products manufactured from recycled and renewable-based raw materials will be marketed by LyondellBasell under the Circulen brand name, which will enable brand owners to improve the sustainability of consumer products.

These products enable the manufacturing of high-quality plastics for strictly controlled utilities such as food packaging and healthcare items. The company sites involved in the production of these are certified according to the ISCC (International Sustainability & Carbon Certification) PLUS standard.

LyondellBasell is committed toward reducing CO2 emissions in its operations globally by 15% per ton of product produced by 2030 against 2015 levels. It has also pledged to manufacture and market two million metric tons per year of recycled or renewable-based polymers by 2030.

Shares of LyondellBasell have surged 106.5% in the past year compared with 81.9% rise of the industry.

The company, in its last earnings call, noted that it anticipates operating at nearly full capacity globally to meet strong demand that is expected to persist owing to low inventories and maintenance downtime across industry. Strong North American integrated polyethylene margins are expected to continue as U.S. producers look to fulfil domestic order backlogs, rebuild inventories and serve export demand.

In the second half of 2021, it is expected that increased mobility will drive higher demand for gasoline and jet fuel, improving margins for its Refining and Oxyfuels & Related Products businesses. Moderating feedstock costs are also expected to increase second quarter margins in the Advanced Polymer Solutions segment. The company looks forward to further reduce debt in the near future.

LyondellBasell Industries N.V. Price and Consensus

LyondellBasell Industries N.V. Price and Consensus
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).

Some better-ranked stocks in the basic materials space are Dow Inc. DOW, Celanese Corporation CE and Cabot Corporation CBT.

Dow has a projected earnings growth rate of roughly 261.5% for the current year. The company’s shares have surged 101.7% in a year. It currently flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Celanese has an expected earnings growth rate of around 68.3% for the current year. The company’s shares have gained 114.1% in the past year. It currently sports a Zacks Rank #1.

Cabot has an expected earnings growth rate of 115.9% for the current fiscal. The company’s shares have gained 109.1% in the past year. It currently flaunts a Zacks Rank #1.

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