After Merger, What's Next for DowDuPont?

Researched by Industrial Info Resources (Sugar Land, Texas)--With Dow Chemical Company (Midland, Michigan) and E.I. du Pont de Nemours and Company's (DuPont) (Wilmington, Delaware) merger officially closed and the companies now trading under a new stock ticker (NYSE:DWDP), what lies ahead? DowDuPont Incorporated, as the company is now known, plans within 18 months to split into three publicly traded components: an agricultural products manufacturer, a materials science company and specialty components maker. The companies will maintain their respective headquarters and plan on slashing about $3 billion per year in costs. Facility closures or sales could be possible as the companies continue to obtain synergy. Industrial Info is tracking more than $6.3 billion in Dow and DuPont projects.

While some divestments seem possible, more than a few facilities seem safe from the chopping block. Among these is Dow's chemicals facility in Freeport, Texas. The company began construction on an ethane-fed ethylene unit addition at the plant in 2014, which is now nearing the end of commissioning. The facility will produce 3.3 billion pounds per year of ethylene. Fluor Corporation (NYSE:FLR) (Irving, Texas) is providing engineering, procurement and construction (EPC) for the project. For more information see Industrial Info's project report. Upon completion, the facility could be expanded by an additional 1.1 million pounds per year for a total design capacity of 4.4 billion pounds per year of ethylene, although this expansion remains in the early planning stages. For more information, see Industrial Info's project report.

DuPont is planning its own ethylene plant expansion in Orange, Texas. In the plant, which currently produces 1.5 billion pounds per year of ethylene, DuPont will perform upgrades to process equipment, including installation of a new furnace, to increase ethylene production by 200 million pounds per year. Chicago Bridge & Iron Company (NYSE:CBI) (The Hague, Netherlands) is performing engineering, procurement and construction on the project, which is set to kick off this quarter and be completed by the end of the year. For more information, see Industrial Info's project report.

One of the states perhaps most concerned with the recently completed merger is Iowa, where the combined companies have a total of 10 plants involved in agricultural undertakings, including seed production and plant genetics facilities. According to the Des Moines Register, agribusiness could be the first entity spun off by DowDuPont, as what constitutes agricultural enterprises is relatively straight forward. In Nevada, Iowa, DuPont is wrapping up construction of a commercial-scale cellulosic fuel ethanol plant. Construction on the plant began in 2013. When complete, the facility will produce 27.5 million gallons per year of ethanol. KBR Incorporated (NYSE:KBR) (Houston, Texas) performed design engineering on the project. For more information, see Industrial Info's project report.

The companies have their fingers in many different pots besides chemicals and agriculture. Among these areas is health care. In Wisconsin, DuPont is underway with expansion and renovation of a probiotics manufacturing facility in Madison. Within the approximately 70,000-square-foot production facility, DuPont is renovating the existing space and installing new processing equipment and high-volume fermenters for increased production capacity. Construction on the project began in early 2015 and is expected to be completed in mid-2018. KBR is performing construction on the project. For more information, see Industrial Info's project report.

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle™, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com.