Back to top

Image: Bigstock

LyondellBasell's (LYB) Petrothene T3XL7420 to Optimize Production

Read MoreHide Full Article

LyondellBasell Industries N.V. (LYB - Free Report) recently launched Petrothene T3XL7420, a cross-linkable, all-in-one flame-retardant compound that is projected to result in significant cost reductions while streamlining manufacturing processes.

This product offering also raises the quality of end products for wire makers in the automotive and appliance industries. LyondellBasell developed this novel compound in response to customer demand and industry needs to optimize production line speeds and improve manufacturing efficiency.   

LyondellBasell, which is among the prominent players in the chemical space along with Celanese Corporation (CE - Free Report) , Air Products and Chemicals, Inc. (APD - Free Report) and The Chemours Company (CC - Free Report) , said that Petrothene T3XL7420 is specifically formulated for use in Society of Automotive Engineers primary wire applications, International Organization for Standardization thin wall applications, and Underwriters Laboratories and Canadian Standards Association application wire.

Petrothene T3XL7420 has various advantages that make it an appealing choice for wire makers, including improved cure kinetics, higher stiffness for faster small gauge wire assembly and superior barrier performance when compared to other Petrothene XL.  

Petrothene T3XL7420 has passed extensive testing and certification procedures to ensure its quality and dependability. LyondellBasell's latest development strengthens its position as a leading producer of creative solutions for the wire and cable sector, and the company anticipates that this compound will become the preferred product for a wide range of automotive and appliance wiring applications.

LYB, 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.

Another prominent chemical maker, Celanese, expects adjusted earnings in the range of $2.10-$2.50 per share for the fourth quarter. For the full year, it anticipates adjusted earnings in the range of $9-$10. CE is slated to release fourth-quarter earnings on Feb 20.

Air Products, on its fourth-quarter fiscal 2023 call, said that it expects fiscal 2024 adjusted earnings per share of $12.80-$13.10, indicating 13% growth from the prior year’s adjusted earnings at the midpoint. For the first quarter of fiscal 2024, the company expects adjusted earnings per share in the range of $2.90-$3.05, suggesting a rise of 13% at the midpoint from the year-ago quarter. APD is slated to release fiscal first-quarter earnings on Feb 5.

Chemours estimates adjusted EBITDA for 2023 to be between $1.025 billion and $1.075 billion. CC is scheduled to release fourth-quarter earnings on Feb 14.

Published in