Celanese and Indian Oil Partner to Build Plant in India
Celanese Corporation (CE) and Indian Oil Corporation of Delhi, India, have signed a Memorandum of Understanding (:MOU) to explore the possibility of a joint investment in a fuel ethanol plant to be constructed in India, which will utilize Celanese’s TCX Technology.
The plant is expected to be located at Paradip in Odisha State of India. Indian Oil’s refineries will provide the plant with petroleum coke (petcoke), a by-product in the refining process. The investment is expected to help in converting petcoke to a low-cost, high-octane and clean-burning gasoline blending component (ethanol) and potentially other co-product petrochemical derivatives. Ethanol will help in meeting the rising gasoline demand of India.
Indian Oil Corporation Ltd. is India's biggest company by sales. It is the highest-ranked Indian company in the latest Fortune ‘Global 500’ listings. The company runs integrated operations in the field of refining, marketing, pipelines, petrochemicals, gas, exploration and production, and R&D activities.
Celanese is one of the world's largest producers of acetyl products as well as a leading global producer of high-performance engineered polymers. The company has taken up cost-cutting measures and all the necessary steps to run its plants better and counter weak demand.
Moreover, Celanese is aggressively expanding its capacity in the emerging Asian markets. The company’s expansion initiatives in China are expected to support earnings growth.
Celanese is a Zacks Rank #3 (Hold) stock.
Better-ranked stocks worth considering in the chemical space include Valhi Inc. (VHI), LyondellBasell Industries N.V. (LYB) and Akzo Nobel NV (AKZOY). While Valhi carries a Zacks Rank #1 (Strong Buy), LyondellBasell and Akzo Nobel have a Zacks Rank #2 (Buy).
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