Yahoo Finance LyondellBasell (LYB) and EEW to Team Up for Waste Sorting
LyondellBasell Industries N.V. LYB and EEW Energy from Waste, a European leader in thermal waste treatment, have signed a letter of intent ("LOI"). The LOI includes a potential long-term strategic partnership to extract and recycle plastics from incineration waste streams.
This proposed collaboration is expected to potentially include the construction of waste pre-sorting facilities at or near EEW incineration plants to remove plastics from waste streams deemed for incineration, and investment in advanced sorting facilities to further sort and refine the plastic that has been removed.
This alliance supports LyondellBasell's new strategy of investing in advanced sorting infrastructure for producing plastic waste-based feedstocks, developing its Circular and Low Carbon Solutions business, and delivering on its value-creation objectives. The materials from these sorting facilities are expected to support LYB's existing mechanical recycling facilities in the Netherlands and a potential advanced recycling plant in Germany. They will allow the company to optimize waste streams and generate additional value as well.
The collaboration represents an advancement in recycling opportunities, utilizing LyondellBasell and EEW locations and technical know-how to enable a sustainable circular economy.
Shares of LYB have lost 17% in the past year against the 8% decline of its industry.
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LyondellBasell, on its fourth-quarter call, said that it anticipates the tough economic circumstances to persist, at least until the first half of 2023. While aligning its production process with global demand trends, LyondellBasell expects utilization rates for its operating assets to be 80% for its Olefins & Polyolefins and Intermediates & Derivatives segments.
In January, the company observed steady demand from the customer packaging, oxyfuels and refining markets. LYB anticipates improved seasonal demand in 2023.
LyondellBasell Industries N.V. Price and Consensus
LyondellBasell Industries N.V. price-consensus-chart | LyondellBasell Industries N.V. Quote
Zacks Rank & Key Picks
LyondellBasell currently carries a Zacks Rank #3 (Hold).
Better-ranked stocks worth considering in the basic materials space include Olympic Steel ZEUS, Steel Dynamics STLD and Reliance Steel & Aluminum Co. RS.
Olympic Steel currently sports a Zacks Rank #1 (Strong Buy). ZEUS’ earnings beat the Zacks Consensus Estimate in all the last four quarters. It has a trailing four-quarter earnings surprise of approximately 26.2% on average. ZEUS has rallied around 40.8% in a year. You can see the complete list of today’s Zacks #1 Rank stocks here.
Steel Dynamics currently sports a Zacks Rank #1. STLD’s earnings beat the Zacks Consensus Estimate in all the last four quarters. It has a trailing four-quarter earnings surprise of roughly 11.3% on average. STLD has rallied around 26.9% in a year.
Reliance Steel currently carries a Zacks Rank #1. RS’ earnings beat the Zacks Consensus Estimate in each of the last four quarters. It has a trailing four-quarter earnings surprise of roughly 13.4% on average. RS has gained around 34.2% in a year.
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