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Celanese (CE) to Construct LCP Polymerization Plant in China

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Celanese Corporation (CE - Free Report) announced that it plans to build a world-class multi-phase Liquid Crystal Polymer (“LCP”) polymerization plant in China. The plant will facilitate growth in its high-value Vectra and Zenite LCP product lines. The site selection is ongoing and both existing and Greenfield locations are being considered.

The first phase of this project is expected to be started in 2024. This investment is expected to support an annual LCP production capacity of 20 kilotons.

Celanese will become the only LCP producer with assets in Asian and Western Hemisphere, with the addition of this new capacity. This will enable it to serve customers in multiple regions. Currently, Celanese has its LCP polymerization facilities in Shelby, NC, and LCP compounding in North America, Europe and China.

This project will help the company meet the significant demand for LCP products and continue its innovation with consumers in this key geography.

Shares of Celanese have gained 17% in the past year compared with 15.7% rise of the industry.

Celanese’s global demand during the third quarter displayed recovery across most of its end markets. It expects the momentum witnessed in the third quarter to continue in the fourth quarter, which is expected to partly offset various headwinds including a major turnaround at its Frankfurt POM facility. For 2020, the company expects adjusted earnings of around $7-$7.10 per share. It is focused on controllable actions to drive strong growth next year amid uncertainties, including production planning, productivity and disciplined capital deployment.

 

Zacks Rank & Key Picks

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

Some better-ranked stocks in the basic materials space are Fortescue Metals Group Limited (FSUGY - Free Report) , BHP Group (BHP - Free Report) and Impala Platinum Holdings Limited (IMPUY - Free Report) .

Fortescue has a projected earnings growth rate of 73.5% for the current fiscal. The company’s shares have surged around 159% in a year. It currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

BHP has an expected earnings growth rate of 49.16% for the current fiscal. The company’s shares have gained around 30.3% in the past year. It currently flaunts a Zacks Rank #1.

Impala has an expected earnings growth rate of 131.7% for the current fiscal. The company’s shares have surged around 36.4% in the past year. It currently sports a Zacks Rank #1.

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