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Westlake (WLK) Invests in CPF to Repurpose Plastic Waste
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Westlake Corporation’s (WLK - Free Report) subsidiary, Westlake Innovations, Inc., recently announced an investment in the Circular Plastics Fund (“CPF”). The fund aims to speed up the transition to a plastics circular economy by expanding advanced recycling technology companies that transform plastic waste streams into primary commodities for producing new plastic products.
Westlake's investment expands on the company's commitment to supporting the creation of a more sustainable future through continuous improvement in its own manufacturing as well as strategic investments in innovative technologies and start-up companies.
The Luxembourg-registered CPF is an Article 9 "dark green" impact fund under the European Union's Sustainable Finance Disclosure Regulation. Infinity Recycling administers the CPF, which was established to expedite the world's transition to a closed-loop plastics economy in which leftover polymer waste streams, accounting for more than 85% of plastic waste globally, are turned into building blocks for the manufacture of new plastics.
The fund's approach seeks to considerably lower the carbon footprint of the plastics business and contribute to the elimination of the world's plastic waste problem.
The CPF contributes significantly to reducing the plastic waste problem and unleashing much-needed capacity in high-demand recovered commodities. The fund employs a return-driven investment approach that promotes value creation in advanced recycling and accelerates the transition to a circular economy for plastics.
Shares of WLK have lost 8.1% over the past year compared with an 13.7% decline of its industry.
Image Source: Zacks Investment Research
On its fourth-quarter earnings call, WLK stated that it expects the Performance and Essential Materials unit to be profitable at higher operating rates due to its North American base, which leverages a structural global cost advantage in feedstocks, fuel and power. The segment is also projected to gain from lower power and fuel costs in Europe, as well as the possibility of stronger economic growth in China.
In Housing and Infrastructure Products, the company expects the residential development slowdown to continue due to historically low home affordability. Repair and remodeling activity, on the other hand, is growing moderately, the company noted.
Better-ranked stocks worth considering in the basic materials space include PPG Industries, Inc. (PPG - Free Report) , Steel Dynamics, Inc. (STLD - Free Report) and Olympic Steel, Inc. (ZEUS - Free Report) .
PPG Industries currently carries a Zacks Rank #1 (Strong Buy). Shares of PPG have gained 11.5% in the past year. It delivered a trailing four-quarter earnings surprise of roughly 8% on average. You can see the complete list of today’s Zacks #1 Rank stocks here.
Steel Dynamics currently carries a Zacks Rank #1. Shares of STLD have gained 17.1% in the past year. It topped the Zacks Consensus Estimate in all the last four quarters. It delivered a trailing four-quarter earnings surprise of 11.32% on average.
Olympic Steel currently carries a Zacks Rank #1. Shares of ZEUS have gained 31.8% in the past year. It topped the Zacks Consensus Estimate in all the last four quarters. It delivered a trailing four-quarter earnings surprise of 26.2% on average.
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Westlake (WLK) Invests in CPF to Repurpose Plastic Waste
Westlake Corporation’s (WLK - Free Report) subsidiary, Westlake Innovations, Inc., recently announced an investment in the Circular Plastics Fund (“CPF”). The fund aims to speed up the transition to a plastics circular economy by expanding advanced recycling technology companies that transform plastic waste streams into primary commodities for producing new plastic products.
Westlake's investment expands on the company's commitment to supporting the creation of a more sustainable future through continuous improvement in its own manufacturing as well as strategic investments in innovative technologies and start-up companies.
The Luxembourg-registered CPF is an Article 9 "dark green" impact fund under the European Union's Sustainable Finance Disclosure Regulation. Infinity Recycling administers the CPF, which was established to expedite the world's transition to a closed-loop plastics economy in which leftover polymer waste streams, accounting for more than 85% of plastic waste globally, are turned into building blocks for the manufacture of new plastics.
The fund's approach seeks to considerably lower the carbon footprint of the plastics business and contribute to the elimination of the world's plastic waste problem.
The CPF contributes significantly to reducing the plastic waste problem and unleashing much-needed capacity in high-demand recovered commodities. The fund employs a return-driven investment approach that promotes value creation in advanced recycling and accelerates the transition to a circular economy for plastics.
Shares of WLK have lost 8.1% over the past year compared with an 13.7% decline of its industry.
Image Source: Zacks Investment Research
On its fourth-quarter earnings call, WLK stated that it expects the Performance and Essential Materials unit to be profitable at higher operating rates due to its North American base, which leverages a structural global cost advantage in feedstocks, fuel and power. The segment is also projected to gain from lower power and fuel costs in Europe, as well as the possibility of stronger economic growth in China.
In Housing and Infrastructure Products, the company expects the residential development slowdown to continue due to historically low home affordability. Repair and remodeling activity, on the other hand, is growing moderately, the company noted.
Westlake Corp. Price and Consensus
Westlake Corp. price-consensus-chart | Westlake Corp. Quote
Zacks Rank & Key Picks
WLK currently carries Zacks Rank #3 (Hold).
Better-ranked stocks worth considering in the basic materials space include PPG Industries, Inc. (PPG - Free Report) , Steel Dynamics, Inc. (STLD - Free Report) and Olympic Steel, Inc. (ZEUS - Free Report) .
PPG Industries currently carries a Zacks Rank #1 (Strong Buy). Shares of PPG have gained 11.5% in the past year. It delivered a trailing four-quarter earnings surprise of roughly 8% on average. You can see the complete list of today’s Zacks #1 Rank stocks here.
Steel Dynamics currently carries a Zacks Rank #1. Shares of STLD have gained 17.1% in the past year. It topped the Zacks Consensus Estimate in all the last four quarters. It delivered a trailing four-quarter earnings surprise of 11.32% on average.
Olympic Steel currently carries a Zacks Rank #1. Shares of ZEUS have gained 31.8% in the past year. It topped the Zacks Consensus Estimate in all the last four quarters. It delivered a trailing four-quarter earnings surprise of 26.2% on average.