LyondellBasell Industries N.V. (LYB - Free Report) has commenced production at its new polypropylene (PP) compounding plant in Dalian, China. The 20 kiloton per year plant is the company's third facility in China. It is strategically located to cater the country’s growing automotive market.
LyondellBasell is the biggest producer of PP compounds globally. The company presently operates PP compounding plants in Suzhou and Guangzhou in China.
The new PP compounding plant, which leverages LyondellBasell’s global value chain, is expected to enable the company to cut shipping time and logistics costs and better serve its customers.
The Dalian facility will supply the company’s customers with the innovative products they need to make more efficient and comfortable vehicles. It will help LyondellBasell to retain its leadership position in the automotive space. The new plant also enables the company to further expand into the important North China region which is home to a host of major auto makers.
LyondellBasell, last month, said that Shandong Shougang Luqing Co., Ltd, has chosen its industry-leading Hostalen Advanced Cascade Process (ACP) polyethylene technology for a 350 KTA high density polyethylene (HDPE) unit to be constructed in the latter’s petrochemical complex, at Bohai Industry Park, Shouguang, Shandong Province, China.
This technology is known for increasing the flexibility and versatility in multimodal HDPE resins production compared to other HDPE technologies.
LyondellBasell, which is among the prominent chemical makers along with BASF S.A. (BASFY - Free Report) , Celanese Corporation (CE - Free Report) and Air Products and Chemicals, Inc. (APD - Free Report) , posted strong second-quarter results on the back of its investments in capacity expansions and asset maintenance.
The company is undertaking expansion projects to leverage the U.S. natural gas liquids (NGLs) advantage. LyondellBasell's ethylene expansion initiatives are likely to boost the capacity and add to its earnings. It also remains committed to boosting shareholder returns by leveraging healthy cash flows.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Click here for the 6 trades >>