Eastman Chemical To Offer Advanced Recycling Technology

Eastman Chemical Company (NYSE:EMN) recently announced plans to pursue with the launch of an advanced circular recycling technology. It employs polyester waste that cannot be recycled by current mechanical methods, which often ends in waterways and landfills.

The technology uses the process of methanolysis that breaks down polyester-based products into their polymer building blocks. Following this process, these blocks can be reintroduced to the production of new polyester-based polymers. This will deliver a true circular solution.

Eastman Chemical has more than three decades of expertise in this innovative recycling process and is one of the forerunners in developing methanolysis technology at commercial scale. The move enables the company to address the increasing challenges of plastic waste in environment through this solution.

The company is executing an engineering feasibility study on the design and construction of a commercial scale methanolysis facility. This will enable the company to cater to the demands of customers. It is also engaged in preliminary discussions with potential partners across the value chain regarding the development of such a facility. Eastman Chemical intends to operate full-scale on advanced circular recycling facility within 24-36 months.

Moreover, the company’s efforts to find new solutions to advance the circular economy is aligned with its innovation-driven growth strategy along with creating value through sustainability. Based on its strong focus on opportunities and issues in the environmental, social and governance (ESG) framework, the company has established strategies and goals to address complex challenges on a global scale.

Eastman Chemical’s shares have lost 24.6% in the past year compared with the 17.6% decline of the industry.

Zacks Rank & Key Picks

Eastman Chemical currently carries a Zacks Rank #4 (Sell).

A few better-ranked stocks in the basic materials space include Kirkland Lake Gold Ltd. (TO:KL) , Ingevity Corporation (NYSE:NGVT) and Materion Corporation (NYSE:MTRN) , all currently sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Kirkland has an expected earnings growth rate of 8.8% for 2019. The company’s shares have surged 121.5% in the past year.

Ingevity has an expected earnings growth rate of 17.9% for 2019. The company’s shares have gained 40.1% in a year’s time.

Materion has an expected earnings growth rate of 12.6% for 2019. Its shares have gained 9% in a year’s time.

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