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Dow and Johnson Matthey License Process Technology to QXTD

Zacks Equity Research
·3-min read

Dow Inc. DOW and Johnson Matthey announced that Zibo Qixiang Tengda Chemical Company, Ltd. (“QXTD”) selected LP Oxo Technology for producing isononyl alcohol (“INA”) at a new manufacturing plant.

The facility is expected to be constructed at the integrated petrochemical complex of QXTD in Zibo City, China. Notably, the facility will likely have an annual capacity of 200,000 metric tons. The plant operation is anticipated to start in 2023.

LP Oxo Technology, which is licensed through Dow and Johnson Matthey, allows sustainable INA production. Moreover, the technology needs a smaller manufacturing footprint and less consumption of energy compared to traditional INA production processes, without a loss in efficiency and throughput.

INA is generally used for producing Diisononyl Phthalate, Diisononyl Adipate and Triisononyl Trimellitate plasticizers. Notably, products, which are produced using INA, are mainly used in the PVC industry can also be found in automotive, wire, cable and conducting applications.

INA is also well-placed to grow above the industry average with its special properties that cater to evolving health and environmental regulations related to downstream applications.

To date, the suite of LP Oxo Technology has been licensed into a large number of projects throughout 15 countries.

The technology will help QXTD to offer new INA volume online to allow downstream products with improved health and environmental profiles. Notably, the new plant is Johnson Matthey’s 56th license of LP Oxo Technology in collaboration with Dow.

Dow’s shares have lost 15.3% in the past year compared with the 12.2% decline recorded by the industry.

 

 

Dow, on its first-quarter earnings call, said that it is seeing indications of a recovery from the virus outbreak in China, while still assessing the impacts of the pandemic in other major geographies. Factoring in a gradual and sustainable return of global economic activities, and the reopening of economies in May and June, the company expects recovery as the year progresses.

Dow Inc. Price and Consensus

 

Dow Inc. Price and Consensus
Dow Inc. Price and Consensus

Dow Inc. price-consensus-chart | Dow Inc. Quote

Zacks Rank & Stocks to Consider

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

Some better-ranked companies in the basic materials space are Agnico Eagle Mines Limited AEM, Equinox Gold Corp. EQX and Newmont Corporation NEM.

Agnico Eagle currently sports a Zacks Rank #1 (Strong Buy) and has a projected earnings growth rate of 75.3% for 2020. The company’s shares have gained 37.7% in a year. You can see the complete list of today’s Zacks #1 Rank stocks here.

Equinox Gold has a projected earnings growth rate of 65.5% for 2020. It currently has a Zacks Rank #2 (Buy). The company’s shares have rallied 58% in a year.

Newmont has a projected earnings growth rate of 82.6% for the current year. The company’s shares have rallied around 74% in a year. It currently has a Zacks Rank #2.

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Dow Inc. (DOW) : Free Stock Analysis Report
 
Newmont Corporation (NEM) : Free Stock Analysis Report
 
Agnico Eagle Mines Limited (AEM) : Free Stock Analysis Report
 
Equinox Gold Corp. (EQX) : Free Stock Analysis Report
 
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