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LyondellBasell (LYB) and SUEZ Acquire TIVACO, Expand Capacity

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LyondellBasell Industries N.V. (LYB - Free Report) and SUEZ jointly announced the acquisition of TIVACO, which is a plastic recycling company located in Blandain, Belgium. TIVACO will become a part of Quality Circular Polymers (“QCP”), the companies’ existing 50/50 plastics recycling joint venture.

With this new acquisition, QCP will boost production capacity for recycled materials to around 55,000 tons per year. TIVACO operates five production lines with a processing capacity of roughly 22,000 tons of recycled plastic per year.

QCP is dedicated toward ending plastic waste in the environment. The joint venture capitalizes on the strengths of the two companies. LyondellBasell will leverage its long-standing leadership in innovative plastic production technology, experience in product development and deep knowledge of the market. SUEZ will make use of its leading-edge technology solutions in sorting and recycling to improve the preparation of materials to be recovered at QCP.

SUEZ and LyondellBasell are a part of the Alliance to End Plastic Waste - a global, cross-value chain non-profit organization dedicated toward ending plastic waste in the environment. It brings together diversified resources and expertise for the creation of innovative solutions globally.

Shares of LyondellBasell have dropped 3% in the past year compared with 9.8% rise of the industry.

The company expects global polyethylene demand to grow notwithstanding the pandemic and recession. For the fourth quarter, it expects continued strength in North American integrated polyethylene margins. The company is expanding its key projects to leverage on U.S. natural gas liquids advantage. The A. Schulman buyout will also generate significant cost synergies. LyondellBasell is also committed toward boosting shareholders’ returns.

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 and Key Picks

LyondellBasell currently carries a Zacks Rank #4 (Sell).

Some better-ranked stocks worth considering in the basic materials space are Bunge Limited (BG - Free Report) , Silvercorp Metals Inc. (SVM - Free Report) , and First Majestic Silver Corp. (AG - Free Report) .

Bunge has a projected earnings growth rate of 43% for the current year. The company’s shares have gained around 12% in a year. It currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Silvercorp has an expected earnings growth rate of 40% for the current year. The company’s shares are up around 15.5% in the past year. It currently carries a Zacks Rank #2 (Buy).

First Majestic has an expected earnings growth rate of 75% for the current year. The company’s shares have gained around 7.4% in the past year. It currently carries a Zacks Rank #2.

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