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LyondellBasell Hostalen ACP Chosen by China Energy Group Ningxia Coal

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LyondellBasell Industries N.V. (LYB - Free Report) recently announced that China Energy Group Ningxia Coal Industry Co., Ltd. has chosen LYB Hostalen Advanced Cascade Process ("ACP") technology for a 300 kiloton (kt)/year high-density polyethylene (HDPE) plant. The plant will be constructed in Yinchuan City, Ningxia Hui Autonomous Region, China. 

China Energy Group Ningxia Coal's selection to use LYB technology underlines LyondellBasell’s credibility in the polyethylene market. With this license, Hostalen ACP's global nameplate capacity will exceed 13 million tons per year, demonstrating the success of this leading technology. 

China Energy Group Ningxia Coal chose Hostalen ACP low-pressure slurry process technology because manufacturing capability is critical for differentiation. The Hostalen ACP process technology, along with the related Ziegler catalyst chemistry, enables China Energy Group Ningxia Coal to meet that demanding target. 

Hostalen ACP process technology produces high-performance, multi-modal HDPE resins with an industry-leading stiffness/toughness balance, impact resistance, high stress cracking resistance and process benefits for use in pressure pipe, film, blow molding and caps/closure applications. 

LYB, a prominent player in the chemical space along with Eastman Chemical Company (EMN - Free Report) , PPG Industries Inc. (PPG - Free Report) and Air Products and Chemicals, Inc. (APD - Free Report) , noted that Hostalen ACP facility will begin operations using Avant Z501 and Avant Z509-1 catalysts, producing a full spectrum of multi-modal HDPE products. 

New licensees have the option of joining the LYB Technical Service Program. This program allows them to benefit from LYB's in-house knowledge in continuous production improvement, sustainable product development and catalyst. In addition to the Hostalen ACP process technology, LYB's portfolio of licensed polyolefin processes and catalysts includes Spheripol, Spherizone, Lupotech, Metocene PP and Avant.

For the third quarter, LyondellBasell anticipates margins to gain from the lower costs of natural gas and natural gas liquids used in its North American and Middle Eastern production against higher oil-based expenses in most other locations. With the ongoing summer driving season, oxyfuel margins are projected to stay higher than historical levels because of high octane premiums. 

Another prominent chemical maker, Eastman Chemical, expects earnings per share (EPS) for 2024 to be between $7.40 and $7.85. Furthermore, EMN expects to deliver around $1.4 billion in operating cash flow in 2024.

PPG anticipates flat organic sales and adjusted earnings per share at the bottom end of the $8.15 to $8.30 range for full-year 2024.

Air Products, on its fiscal third-quarter call, maintained its fiscal 2024 full-year adjusted EPS projection of $12.20 to $12.50, suggesting a 6-9% increase from the previous year. The company’s adjusted EPS guidance for the fiscal fourth quarter is $3.33-$3.63. 

 

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