Yahoo Finance Eastman Chemical (EMN) Inks FDCA Deal With Origin Materials
Eastman Chemical Company EMN inked a non-exclusive license agreement with Origin Materials. Under the deal, Eastman Chemical has licensed its proprietary 2,5-Furandicarboxylic Acid (FDCA) and FDCA derivatives production technology from renewable resources to Origin Materials. Terms of the agreement remained undisclosed.
The U.S. Department of Energy has identified FDCA as one of the top 12 bio-based building blocks. FDCA can be used to produce polymer resins, films, and fibers and as a building block for plasticizers. Also, it can be converted into a number of high-value chemicals or materials. The largest initial FDCA applications are expected to be to make 100% bio-based plastics, such as polyethylene furanoate for beverage containers and food packaging.
Eastman Chemical has devised technologies for converting 5-(hydroxymethyl) furfural (5-HMF) and its derivatives to crude FDCA, polymer grade FDCA and polymer grade dimethylfuran-2,5-dicarboxylate (DMF) economically. The company’s technology is known for producing crude FDCA, polymer grade FDCA and polymer grade DMF with deftness.
Eastman Chemical’s shares have moved up 35.9% over a year, outperforming the industry’s 30% gain.
Eastman Chemical expects to drive growth on the back of innovation and high-margin products amid an uncertain global business environment. Eastman Chemical believes that disciplined capital allocation and aggressive cost-management policies might contribute to earnings and offset challenges faced by the company in Fibers and ethylene pricing.
Factoring in strong first-half 2017 results, the company expects adjusted earnings per share for 2017 to grow 10-12% year over year, up from its earlier view of 8-12%.
Eastman Chemical remains focused on cost-cutting and productivity actions. The company aims to achieve $100 million of cost savings in 2017. The company remains committed to reduce debt and boost shareholder returns.
Eastman Chemical Company Price and Consensus
Eastman Chemical Company Price and Consensus | Eastman Chemical Company Quote
Zacks Rank & Other Stocks to Consider
Eastman Chemical currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the chemical space are The Chemours Company CC, FMC Corporation FMC and Air Products and Chemicals, Inc. APD.
Chemours has expected long-term earnings growth of 15.5% and sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
FMC has expected long-term earnings growth of 11.3% and flaunts a Zacks Rank #1.
Air Products has expected long-term earnings growth of 12.1% and carries a Zacks Rank #2.
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