Celanese Corporation’s (NYSE:CE) Polyacetal Facility of Ibn Sina Joint Venture (JV) has successfully come online. The 50,000 metric ton polyacetal manufacturing facility located in Jubail Industrial City, Saudi Arabia was constructed as a part of the JV with Ibn Sina.
Ibn Sina is a JV between SABIC and CTE, a company jointly owned by subsidiaries of Celanese and Duke Energy (NYSE:DUK) . Celanese, SABIC and Duke Energy entered into the Ibn Sina JV in 1981.
Post completion of performance runs for all polyacetal grades and achievement of full production rates, the facility was officially declared commercially operational. Henceforth, Celanese’s economic interest in Ibn Sina will increase from 25% to a total of 32.5%, resulting in further financial benefits for the company.
Methanol which is produced internally at Ibn Sina will be used as a feedstock in the facility. Polyacetal is a differentiated, high value-added product mainly used in automobile and electronics industries along with mechanical and construction manufacturers along with other industrial applications.
Celanese has outperformed the industry over a year. The company’s shares have moved up around 32.1%, outperforming the 24.7% growth recorded by the industry.
The company expects business and productivity momentum to offset fourth-quarter weakness. Celanese is optimistic that it can grow adjusted earnings per share for 2017 toward the top end of its earlier announced guidance range of 9-11%.
Celanese’s strategic measures including operational cost savings through productivity actions and pricing initiatives are likely to lend support to earnings in 2017. The company is also poised to gain from growth initiatives that include acquisitions.
Celanese Corporation Price and Consensus
Zacks Rank & Stocks to Consider
Celanese currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the basic materials space are Kronos Worldwide Inc. (NYSE:KRO) , and Koppers Holding Inc. (NYSE:KOP) , both sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Kronos Worldwide has expected long-term earnings growth of 5%. Its shares have skyrocketed 113.2% over the past year.
Koppers has expected long-term earnings growth of 18%. Shares of the company have rallied 25.2% yearly.
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Duke Energy Corporation (DUK): Free Stock Analysis Report
Celanese Corporation (CE): Free Stock Analysis Report
Kronos Worldwide Inc (KRO): Free Stock Analysis Report
Koppers Holdings Inc. (KOP): Free Stock Analysis Report
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