Markets
BAK

BP Licenses PTA Technology to Baota Petrochemical Group

BP plc BP recently inked a deal with a majority owned affiliate of Baota Petrochemical Group - Ningxia Baota Chemical Fibre Co. Ltd. to license its latest generation purified terephthalic acid (PTA) technology. This represents the third deal of the same kind to be signed by BP.

A 1.2 million tons per annum (tpa) unit will be built by Ningxia Baota at the Ningxia Ningdong Energy and Chemical Zone in Ningxia Hui Autonomous Region, China. The unit will produce PTA, which is the main raw material required for polyesters used in the textile and packaging industry. Baota anticipates the PTA plant to start production in 2018.

BP has licensed its latest PTA technology in India, Oman and China three important growth markets. The supermajor also has its own world-scale plant functioning at Zhuhai in Guangdong, China. The company believes that the polyester supply chain will have great potential going forward.

BP's Global Petrochemicals Business has a total (net to BP) capacity of 18.3 million tpa. This includes 6.7 million tpa of PTA at 18 locations in ten countries.

BP is one of the major energy companies in the world. The company provides its customers with fuel for transportation, energy for heat and light, retail services and petrochemical products.

BP's PTA technology was initially developed in the U.S. during the 1950s and through successive iterations has continued to develop in terms of its capital and operating costs. BP's latest iteration of PTA technology has been licensed to JBF Industries in India with 1.25 million tpa capacity and to Oman International Petrochemical Industries Company in Oman with 1.1 million tpa capacity. The technology is also being used by the BP Zhuhai joint venture (JV) in China. The JV's latest facility of 1.25 million tpa capacity was commissioned in the first quarter of 2015.

BP carries a Zacks Rank #5 (Strong Sell). Some better-ranked stocks from the same space are Alon USA Partners, LP ALDW , Braskem S.A. BAK and ReneSola Ltd SOL . All these stocks sport a Zacks Rank #1 (Strong Buy).

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

BP PLC (BP): Free Stock Analysis Report

RENESOLA LT-ADR (SOL): Free Stock Analysis Report

BRASKEM SA (BAK): Free Stock Analysis Report

ALON USA PTNRS (ALDW): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

BAK BP SOL

Other Topics

Stocks

Latest Markets Videos

Zacks

Zacks is the leading investment research firm focusing on stock research, analysis and recommendations. In 1978, our founder discovered the power of earnings estimate revisions to enable profitable investment decisions. Today, that discovery is still the heart of the Zacks Rank. A wealth of resources for individual investors is available at www.zacks.com.

Learn More