Sector News

DowDuPont spin-offs to occur by mid-2019

February 2, 2018
Chemical Value Chain

DowDuPont says its planned materials science spin-off–the future Dow Chemical–will occur by the end of the first quarter of 2019, with specialty products and agriculture to separate into two different companies by 1 June 2019.

DowDuPont had expected the spin-offs to occur within 24 months of close of the merger, which was on 1 September 2017. The accelerated timeline is “based on the progress we’ve made” getting the organizations in place and identifying possibilities for cost-cutting and synergies, according to DowDuPont CEO Edward Breen.

The company expects to identify assets and liabilities for the three spin-off entities during the first half of this year. Initial SEC filings are expected in second half of the year, with equity road-shows to follow during the first quarter of 2019. Full management teams for materials science, specialty products, and agriculture will also be identified during that time. DowDuPont will also be working to set up legal entities and corporate functions for the new companies over the next year.

Meanwhile, the company is raising its target for total cost cuts to $3.3 billion, from $3 billion. Some $800 million/year in cost cuts have been identified thus far, a larger figure than initially forecast, according to Breen. These higher savings figures are largely due to work on procurement activities, and further savings are possible, Breen says. The focus is now moving to growth synergies, and the company expects to release more specifics on those in upcoming the coming quarters, he adds.

By Vincent Valk

Source: Chemical Week

comments closed

Related News

June 24, 2022

BASF to build commercial scale battery recycling black mass plant in Schwarzheide, Germany

Chemical Value Chain

BASF will build a commercial scale battery recycling black mass plant in Schwarzheide, Germany. This investment strengthens BASF’s cathode active materials (CAM) production and recycling hub in Schwarzheide. The site is an ideal location for the build-up of battery recycling activities given the presence of many EV car manufacturers and cell producers in Central Europe.

June 24, 2022

Clariant restructures business units, reorganizes leadership

Chemical Value Chain

Clariant says it is reducing its number of businesses from five to three, by merging units, under a reorganization that is in line with the company’s purpose-led strategy and cultural transformation. The moves will position Clariant for long-term sustainable growth, the company says.

June 24, 2022

Chemicals & Plastics Procurement: what to expect in the second half of 2022

Chemical Value Chain

Chemicals & plastics industry has the most diversified end-use market across all manufacturing industries. The industry returned to growth in 2021 but a supply chain crunch prevented it from becoming stronger. The market is likely to stabilize in the second half of 2022 with a supply-demand balance.