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LyondellBasell (LYB) MSI Technology Tie Up for Consumer Packaging

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LyondellBasell Industries N.V. (LYB - Free Report) and MSI Technology, LLC announced an agreement wherein MSI Technology will serve the LyondellBasell Polybutene-1 (PB-1) resin line in consumer packaging applications in North America. MSI Technology is also the sales representative for LyondellBasell's Plexar product range.

The collaboration is a strategic fit for MSI Technology's current markets. It will employ its technical sales approach, paired with its present specialty product portfolio, to expand its consumer packaging options to customers.

LyondellBasell PB-1 resins are widely utilized in consumer packaging applications for easy-open packaging and film modification for seal initiation temperature, resulting in a broad seal-peel temperature range and consistent, easy processability, good seal integrity and reproducible peel performance, among others.

The PB-1 resins perfectly connect with MSI Technology's aim of providing specialty polymers and solutions to the packaging sector.

Shares of LyondellBasell have lost 1.6% over the past year compared with a 19.9% decline of its industry.

Zacks Investment Research
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The company, on its third-quarter call, said that it anticipates seasonally lower demand across most industries in the fourth quarter. Higher feedstock costs, new industry capacity and slowing demand growth in China continue to put pressure on global olefins and polyolefins margins. Following the end of the summer driving season, oxyfuels and refining margins are projected to fall.

Nonetheless, oxyfuel margins are expected to remain significantly higher than historical averages. LyondellBasell plans to operate its assets in line with market demand during the fourth quarter, with average operating rates of 85% for North American olefins and polyolefins (O&P) assets, 75% for European O&P assets and 70% for Intermediates & Derivatives assets.

Zacks Rank & Key Picks

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

Better-ranked stocks in the basic materials space include, Cameco Corporation (CCJ - Free Report) , Carpenter Technology Corporation (CRS - Free Report) and Alpha Metallurgical Resources Inc. (AMR - Free Report) .

Cameco, carrying a Zacks Rank #1 (Strong Buy), has a projected earnings growth rate of 188% for the current year. The Zacks Consensus Estimate for CCJ’s current-year earnings has been revised upward by 12.5% in the past 60 days. The stock is up around 71.3% in a year. You can see the complete list of today’s Zacks #1 Rank stocks here.

Carpenter Technology currently carries a Zacks Rank #1. CRS beat the Zacks Consensus Estimate in three of the last four quarters while matching it once, with the average earnings surprise being 12.2%. The company’s shares have soared 31.1% in the past year.

The Zacks Consensus Estimate for AMR’s current-year earnings has been revised upward by 69% in the past 60 days. It currently carries a Zacks Rank #1.  AMR delivered a trailing four-quarter earnings surprise of roughly 9.6%, on average. AMR shares are up around 150.6% in a year.


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