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LyondellBasell's (LYB) Spherizone Technology Selected by Repsol

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LyondellBasell Industries N.V. (LYB - Free Report) recently announced that its leading polypropylene technology has been selected by Repsol for the expansion of the latter’s existing facility in Sines, Portugal. Repsol intends to build a 300 KTA Spherizone plant in the facility.

Operations in the plant will begin using LyondellBasell’s Avant ZN catalyst. The Spherizone technology offers an innovative platform for manufacturing polypropylene products having unique architecture and improved features. Including this, more than 25 Spherizone plants have been licensed across the globe.

Apart from the Spherizone process technology, LyondellBasell’s portfolio of polyolefin processes consists of Spheripol, Hostalen, Lupotech, Spherilene, Metocene PP, and Avant.

LyondellBasell noted that Repsol’s choice of the Spherizone process is a testament to the confidence in the technology, which is widely reputed for providing superior polymers for a demanding and fast-growing market.

Repsol stated that the new plant in the Sines industrial complex will boost the polypropylene production capacity. Also, its privileged location and logistic facilities will strengthen the reach in the European market besides reducing the carbon footprint during distribution.

Shares of LyondellBasell have rallied 30.8% in a year, higher than the industry’s rise of 23.8%.

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In its second-quarter earnings call, the company stated that it expects demand for its products and financial results to remain strong. It envisions the rollout of vaccines and the progress of societal reopening globally to support solid worldwide demand for its products in both the manufactured goods and service industries over the coming quarters.

It expects integrated polyethylene margins to remain strong as its customers look to address order backlogs, rebuild inventories, and serve pent-up demand. It also anticipates higher mobility to drive demand for gasoline and jet fuel in the second half of 2021, contributing to improved margins in its Oxyfuels & Related Products and Refining businesses.

Zacks Rank & Key Picks 

Currently, LyondellBasell carries a Zacks Rank #3 (Hold).

Better-ranked stocks in the basic materials space include Avient Corporation (AVNT - Free Report) , Methanex Corporation (MEOH - Free Report) , each flaunting a Zacks Rank #1 (Strong Buy) and The Chemours Company (CC - Free Report) , carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Avient has a projected earnings growth rate of 75.1% for the current year. The company’s shares have surged 82.7% in a year.

Methanex has a projected earnings growth rate of 422.8% for the current year. The company’s shares have rallied 84.5% in a year.

Chemours has a projected earnings growth rate of roughly 86.4% for the current year. The company’s shares have grown 49.8% in a year.


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