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Dow Wraps Up Construction of Freeport Polyethylene Unit
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Dow Chemical (DOW - Free Report) said that it has completed the construction of its new Elite enhanced polyethylene production plant in Freeport, TX. The U.S. chemical kingpin completed the construction on time.
The polyethylene facility, having a capacity of 400,000 metric tons, is the first of the company’s new derivative investments currently underway at its manufacturing sites in Texas and Louisiana. It is also part of Dow’s earlier announced $6 billion expansion on the U.S. Gulf Coast geared to bolster the competitiveness of its downstream, consumer-led businesses.
The polyethylene production unit, which is based on Dow’s proprietary Solution process technology, now enters its commissioning and start-up phase and is expected to be fully operational in the fourth quarter of 2017. The facility will make Elite enhanced polyethylene resins used in flexible packaging applications for food, personal hygiene products and industrial packaging.
Dow is seeing significant feedstock advantage in North America. The company’s investments in the U.S. Gulf coast and Middle East (including the Sadara joint venture) are focused on boosting this advantage.
The company, in March, also completed the construction of its new, world-scale ethylene production plant in Freeport. The ethylene production unit, having a nameplate capacity of 1.5 million metric tons, is expected to be operational by mid-2017. The ethylene unit is among the least capital-intensive ethylene investments currently announced across the U.S. Gulf Coast.
The company’s other three derivative units as well as a planned bi-modal gas phase de-bottleneck project are progressing on schedule and are slated to come stream throughout 2017 and 2018.
Dow has outperformed the Zacks categorized Chemicals-Diversified industry over the last one year, supported by sustained healthy growth fundamentals in its core end-use markets. The company’s shares have gained around 18.7% over this period, compared with roughly 14.5% gain recorded by the industry.
Dow is seeing strong demand across major consumer-focused markets such as packaging, infrastructure, transportation and consumer care, which is contributing to volume and earnings growth.
The company is witnessing signs of positive economic momentum globally amid sustained geopolitical risks and volatility. Dow believes that the strength of its portfolio coupled with its focus on consumer-led markets will continue to serve it well in this backdrop.
Huntsman has an expected long-term earnings growth of 7%.
BASF has an expected long-term earnings growth of 8.9%.
Chemours has an expected long-term earnings growth of 15.5%.
3 Stocks to Ride a 588% Revenue Explosion
At Zacks, we're mostly focused on short-term profit cycles, but the hottest of all technology mega-trends is starting to take hold...
By last year, it was already generating $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for those who make the right trades early. See Zacks' Top 3 Stocks to Ride This Space >>
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Dow Wraps Up Construction of Freeport Polyethylene Unit
Dow Chemical (DOW - Free Report) said that it has completed the construction of its new Elite enhanced polyethylene production plant in Freeport, TX. The U.S. chemical kingpin completed the construction on time.
The polyethylene facility, having a capacity of 400,000 metric tons, is the first of the company’s new derivative investments currently underway at its manufacturing sites in Texas and Louisiana. It is also part of Dow’s earlier announced $6 billion expansion on the U.S. Gulf Coast geared to bolster the competitiveness of its downstream, consumer-led businesses.
The polyethylene production unit, which is based on Dow’s proprietary Solution process technology, now enters its commissioning and start-up phase and is expected to be fully operational in the fourth quarter of 2017. The facility will make Elite enhanced polyethylene resins used in flexible packaging applications for food, personal hygiene products and industrial packaging.
Dow is seeing significant feedstock advantage in North America. The company’s investments in the U.S. Gulf coast and Middle East (including the Sadara joint venture) are focused on boosting this advantage.
The company, in March, also completed the construction of its new, world-scale ethylene production plant in Freeport. The ethylene production unit, having a nameplate capacity of 1.5 million metric tons, is expected to be operational by mid-2017. The ethylene unit is among the least capital-intensive ethylene investments currently announced across the U.S. Gulf Coast.
The company’s other three derivative units as well as a planned bi-modal gas phase de-bottleneck project are progressing on schedule and are slated to come stream throughout 2017 and 2018.
Dow has outperformed the Zacks categorized Chemicals-Diversified industry over the last one year, supported by sustained healthy growth fundamentals in its core end-use markets. The company’s shares have gained around 18.7% over this period, compared with roughly 14.5% gain recorded by the industry.
Dow is seeing strong demand across major consumer-focused markets such as packaging, infrastructure, transportation and consumer care, which is contributing to volume and earnings growth.
The company is witnessing signs of positive economic momentum globally amid sustained geopolitical risks and volatility. Dow believes that the strength of its portfolio coupled with its focus on consumer-led markets will continue to serve it well in this backdrop.
Dow is a Zacks Rank #3 (Hold) stock.
Dow Chemical Company (The) Price and Consensus
Dow Chemical Company (The) Price and Consensus | Dow Chemical Company (The) Quote
Stocks to Consider
Better-ranked stocks in the chemical space include Huntsman Corporation (HUN - Free Report) , BASF SE (BASFY - Free Report) and The Chemours Company (CC - Free Report) , all sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Huntsman has an expected long-term earnings growth of 7%.
BASF has an expected long-term earnings growth of 8.9%.
Chemours has an expected long-term earnings growth of 15.5%.
3 Stocks to Ride a 588% Revenue Explosion
At Zacks, we're mostly focused on short-term profit cycles, but the hottest of all technology mega-trends is starting to take hold...
By last year, it was already generating $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for those who make the right trades early. See Zacks' Top 3 Stocks to Ride This Space >>