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LyondellBasell Polyolefin Technologies Chosen by SHCCIG Yulin

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Key Takeaways

  • SHCCIG Yulin will license four key LyondellBasell technologies for its new petrochemical plant.
  • LYB's technologies will enable SHCCIG Yulin to produce advanced polypropylene and polyethylene products.
  • Spheripol and Spherizone processes will boost SHCCIG Yulin's production efficiency and product diversity.

LyondellBasell Industries N.V. (LYB - Free Report) has announced that SHCCIG Yulin Chemical Co., Ltd. will license four essential technologies for a significant new petrochemical facility in Yulin City, Shaanxi Province, China. The technology package includes Spheripol and Spherizone technologies for two polypropylene plants (400 KTA each), Hostalen Advanced Cascade Process (ACP) technology for a high-density polyethylene plant (300 KTA) and Lupotech T technology for a vinyl acetate copolymer plant (300 KTA).

This comprehensive technology selection will allow SHCCIG Yulin Chemical to produce high-performance polypropylene and polyethylene products for a wide range of applications, as well as vinyl acetate copolymer materials that support renewable energy applications, particularly photovoltaic encapsulants, which contribute to the global energy transition.

LyondellBasell’s collaborative approach, emphasis on long-lasting grades, broad catalyst range and capacity to create EVA photovoltaic encapsulant materials were important process technology selection criteria. 

Spheripol is the leading polypropylene processing technology, with more than 33 million tons of licensed capacity. The latest fifth-generation Spheripol technology incorporates process enhancements that increase operating efficiency. 

The Spherizone multi-zone circulating reactor offers a new and creative platform for producing polypropylene products with novel architecture and improved characteristics. LyondellBasell has licensed more than 10 million tons of the Spherizone process for diversified polypropylene production capacity globally. 

LYB stock has declined 40.1% in the past year against the 24.2% decline of the industry.

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For the second quarter, the company anticipates improved seasonal demand across most of its business segments. U.S. natural gas and ethane feedstock prices have eased, while lower crude oil costs are benefiting operations in Europe and Asia. Oxyfuels margins are expected to rise as gasoline crack spreads widen during the summer driving season. In Europe, ongoing rapid capacity reductions are projected to enhance the regional supply-demand balance over time. Furthermore, a more constructive stance on economic and regulatory policies in Europe is contributing to cautious optimism. Despite ongoing economic uncertainty, global demand for packaging is expected to stay firm, supporting essential sectors like food, healthcare and daily consumer goods.

LYB’s Rank & Key Picks

LYB currently carries a Zacks Rank #5 (Strong Sell).

Better-ranked stocks in the basic materials space include Carpenter Technology Corporation (CRS - Free Report) , Centrus Energy Corp. (LEU - Free Report) and Avino Silver & Gold Mines Ltd. (ASM - Free Report) .

Carpenter Technology currently carries a Zacks Rank #1 (Strong Buy). CRS beat the Zacks Consensus Estimate in each of the last four quarters, with the average earnings surprise being 11.1%. The company's shares have soared 157.7% in the past year. You can see the complete list of today's Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Centrus Energy's current-year earnings is pegged at 71 cents. LEU, carrying a Zacks Rank #1, surpassed the Zacks Consensus Estimate in three of the trailing four quarters, while missing once, with the average earnings surprise being 272.7%. The company's shares have rallied 333.9% in the past year.

Avino Silver, which currently carries a Zacks Rank #1, beat the consensus estimate in each of the trailing four quarters. In this time frame, it delivered an earnings surprise of roughly 104.1%, on average. ASM's shares have rallied 271.5% in the past year.

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