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Westlake (WLK) Epoxy's Pernis Site Achieves ISCC+ Certification

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Westlake Corporation (WLK - Free Report) announced that its Westlake Epoxy’s Pernis site in the Netherlands had achieved a major milestone in its sustainability strategy by completing the first sale of certified mass-balanced Bisphenol A (BPA). The site has also received mass balance certification for tracing and handling sustainable materials used in the production of epoxy products for its International Sustainability & Carbon Plus (ISCC+) certification.

This achievement supports Westlake Epoxy's pledge to integrate renewable carbon materials into its raw material supply chain. This will help in its endeavor to lower energy usage and greenhouse gas emissions.

The certification by mass balance has confirmed that all hydrocarbon feedstock utilized in the manufacturing of liquid epoxy resins at WLK’s Pernis site can be substituted by bio-based alternatives, which include phenol and acetone, which are used for BPA production, as well as propylene, which is used for Epichlorohydrin production.

The receipt of the ISCC+ certification reflects Westlake Epoxy’s commitment to sustainable production and provides an international, practical and transparent system for certifying bio-based, bio-circular and circular raw materials at every level of the supply chain. By chasing its current mix of feedstocks and replacing fossil-based materials with renewable resources, the company is contributing to environmentally, socially and economically sustainable practices.

This recent certification is another proof of Westlake Epoxy’s dedication to environmentally responsible operations. Its European operations were awarded a second Platinum rating from EcoVadis, the world's largest and most trusted provider of business sustainability ratings.

Westlake’s shares have lost 13.2% in a year compared with the industry’s 17.5% decline.

Zacks Investment Research
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The company, in its fourth quarter call, stated that it expects higher operating rates for its performance and essential materials business units backed by its North American footprint that leverages a structural global cost advantage in feedstocks, fuel and power. The division is also expected to benefit from stabilizing power and fuel costs in Europe and the potential for improving economic growth in China. For its Housing and Infrastructure Products unit, the company expects a slowdown of residential construction to be consistent in response to historically low home affordability. 

 

Westlake Corp. Price and Consensus

 

Westlake Corp. Price and Consensus

 

Zacks Rank & Key Picks

Westlake currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the basic materials space are Olympic Steel, Inc.  (ZEUS - Free Report) , Steel Dynamics, Inc. (STLD - Free Report) and Linde plc (LIN - Free Report) . LIN currently carries a Zacks Rank #2 (Buy), while ZEUS and STLD sport a Zacks Rank #1(Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.  

Olympic Steel’s shares have gained 37.5% in the past year. The Zacks Consensus Estimate for ZEUS’ current-year earnings has been revised 61% upward in the past 60 days. It topped the Zacks Consensus Estimate in all the last four quarters. It delivered a trailing four-quarter earnings surprise of 26.2% on average.

Steel Dynamic’s shares have gained 24.3% in the past year. The Zacks Consensus Estimate for STLD’s current-year earnings has been revised 37.2% upward in the past 60 days. It topped the Zacks Consensus Estimate in all the last four quarters. It delivered a trailing four-quarter earnings surprise of 11.3% on average.

Linde’s shares have gained 6.8% in the past year. The company has an earnings growth rate of 8.1% for the current year. The Zacks Consensus Estimate for LIN’s current-year earnings has been revised 25% upward in the past 60 days.

LIN topped the Zacks Consensus Estimate in all the last four quarters. It delivered a trailing four-quarter earnings surprise of 6% on average.

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