LyondellBasell Industries N.V. ( LYB Quick Quote LYB - Free Report) recently announced that PT Polytama Propindo will utilize its Spheripol technology to expand its existing facility.
The process technology will be used for an additional 300 KTA polypropylene plant to be constructed in Balongan, West Java, Indonesia. The construction of the plant is projected to be completed in 2024.
Spheripol is the leading polypropylene process technology with more than 30 million tons of licensed capacity. It has been operating reliably at the Balongan site since the mid-90s, making high value polypropylene resins. The latest fifth generation Spheripol technology includes process improvements which further boosts operational efficiency. The plant would begin operations utilizing Avant ZN catalyst.
New licensees can leverage LyondellBasell’s in-house expertise of continuous production improvement, sustainable product development and catalyst knowhow by optionally joining its Technical Service program.
PT Polytama, a long-time customer of LyondellBasell, stated that the teams showed tremendous efforts to develop a site and a specific solution to produce a number of polypropylene products based on the Spheripol technology. The selection of the technology helps the company to focus on implementing the project in a safe and timely manner.
Shares of LyondellBasell have gained 9.6% in the past year compared with a 9.1% rise of the
industry. Image Source: Zacks Investment Research
The company, in its last earnings call, stated that it expects the demand for its products to remain strong as global economic activities improve, further driven by the rollout of vaccines. It also expects unmet customer demand to boost strength in automotive, construction and other durable goods markets over the next several quarters.
The company expects margins to moderate due to the rising feedstock prices, energy costs and winter seasonality. Nonetheless, it expects to gain from market strengths and tight industry supply.
Zacks Rank & Key Picks
LyondellBasell currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the basic materials space are
Albemarle Corporation ( ALB Quick Quote ALB - Free Report) , Commercial Metals Company ( CMC Quick Quote CMC - Free Report) and AdvanSix Inc. ( ASIX Quick Quote ASIX - Free Report) .
Albemarle, currently sporting a Zacks Rank #1 (Strong Buy), has an expected earnings growth rate of 51.3% for the current year. The Zacks Consensus Estimate for ALB's earnings for the current year has been revised 5.4% upward in the past 60 days. You can see
the complete list of today’s Zacks #1 Rank stocks here.
Albemarle beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters, with the average being 22.1%. ALB has rallied around 26.1% over a year.
Commercial Metals, flaunting a Zacks Rank #1 at present, has a projected earnings growth rate of 10.5% for the current fiscal year. CMC's consensus estimate for the current fiscal year has been revised 6.6% upward in the past 60 days.
Commercial Metals beat the Zacks Consensus Estimate for earnings in three of the last four quarters while missing the same once. It delivered a trailing four-quarter earnings surprise of roughly 13.1%, on average. CMC has increased around 78% over a year.
AdvanSix has a projected earnings growth rate of 3.9% for the current year. The Zacks Consensus Estimate for ASIX’s earnings for the current year has been revised 2% upward in the past 60 days.
AdvanSix beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters, with the average being 46.9%. ASIX has surged 103.2% over a year. It currently carries a Zacks Rank #2 (Buy).