8 Best Plastics Stocks To Invest In Now

4. LyondellBasell Industries N.V. (NYSE:LYB)

Number of Hedge Fund Holders: 38

LyondellBasell Industries N.V. (NYSE:LYB) is an American multinational chemical company that produces and sells plastics, petrochemicals, and basic chemicals. The company’s products are used in many industries, including automotive, construction, and food packaging. LyondellBasell Industries N.V. (NYSE:LYB) is one of the world’s largest producers of polymers.

In September 2024, the company began constructing its MoReTec-1 facility in Wesseling, Germany. This plant will utilize the company’s proprietary advanced recycling technology to produce 50,000 metric tons of recycled feedstocks annually from hard-to-recycle plastic waste. The European Union has recognized this initiative with a €40 million grant, highlighting LyondellBasell’s (NYSE:LYB) commitment to sustainable practices. The facility, designed to achieve high plastic-to-plastic yields, is expected to start operations in 2026 and will significantly reduce the carbon footprint compared to traditional fossil-based feedstocks.

The company’s financial performance remains strong, with a reported EBITDA of $1.2 billion in the third quarter of 2024. In North America, integrated polyethylene margins have improved due to favorable raw material costs and increased polyethylene prices. Year-to-date demand for polyethylene and polypropylene has risen by over 7% and 4% year-over-year, respectively.

LyondellBasell Industries N.V. (NYSE:LYB) is exiting the refining business, with plans to shut down its Houston refinery by the end of the first quarter of 2025. This decision is part of a strategy to move away from a business that has been unstable and offers low-profit margins. The company aims to redirect its efforts towards creating sustainable value. As of the end of the third quarter in 2024, LyondellBasell (NYSE:LYB) reported having $2.6 billion in cash and short-term investments, along with $7.3 billion in available liquidity. This strong financial position supports their investment-grade balance sheet, allowing them to focus on future growth opportunities.

The combination of innovative recycling technology, strong financials, and a clear focus on sustainability positions LyondellBasell Industries N.V. (NYSE:LYB) as an attractive investment opportunity in the plastics sector.