Reports related to this article:
Project(s): View 7 related projects in PECWeb
Plant(s): View 6 related plants in PECWeb
Released December 14, 2015 | SUGAR LAND
en
Researched by Industrial Info Resources (Sugar Land, Texas)--The planned merger between Dow Chemical Company (NYSE:DOW) (Midland, Michigan) and E.I. du Pont de Nemours and Company (NYSE:DD) (DuPont) could have an impact on more than $8 billion in active projects being tracked by Industrial Info. A total of 148 projects by the two Chemical Processing Industry leaders are part of Industrial Info's database.
Leaders of the two companies expect to close the mega-merger in the second half of 2016. To be known as DowDuPont, the new company would have a combined market capitalization of $130 billion, with annual revenue of $83 billion.
One Plus One Equals Three
The company would then separate into three publicly traded businesses--material sciences, agriculture and specialty products. The spinoffs would occur 18-25 months following the merger. "Each of these companies will be able to allocate capital more effectively, apply its powerful innovation more productively, and extend it value-added products and solutions to more customers worldwide," said DuPont Chief Executive Officer (CEO) Edward Breen, who would become CEO of DowDuPont.
The material science company would include performance plastics and materials, with a focus on packaging, automotive applications and construction. Dow CEO Andrew Liveris, who would become chairman of DowDuPont, said Friday the world wants better Food & Beverage packaging. He noted that Sadara Chemical Company, Dow's Middle East joint venture with Saudi Arabian Oil Company (Saudi Aramco) (Dhahran, Saudi Arabia), has met its target to begin producing polyethylene by yearend 2015. Industrial Info is tracking 25 active Sadara projects worth $9.06 billion.
Liveris and Breen said the agriculture company would be a global leader in seed development and crop protection. Industrial Info is tracking DuPont's $35 million expansion of a soybean research facility in Newark, Delaware, which includes a 134,000-square-foot building, two greenhouses, and three high-tech, 60,000-gallon water collection units to expand research in soybeans and other agricultural products.
The specialty products company would encompass electronics and telecommunication, as well as nutrition and health and industrial bio sciences businesses. Solar power materials and biofuels fall under the specialty products tent.
Cost Cutting Ahead
The engineers of the planned merger say it will result in $3 billion in cost-saving synergies. In addition, DuPont announced a global restructuring and plan for 2016 to reduce $700 million in costs in comparison with 2015. The plan will reduce its workforce by 10%, DuPont said, adding it expects sales growth in 2016 to be "challenging." The company had 64,000 employees at the end of 2013.
Dow and DuPont earlier signaled plans to ratchet down capital expenditures. For related information, see October 23, 2015, article - Dow Chemical to Wind Down Capex as Large Projects Brought Online and October 28, 2015, article - DuPont, Huntsman to Slash Capital Spending After Weak Prices, Strong Dollar Slam Third-Quarter 2015 Results.
Dow Corning Ownership
Dow announced separately it will become the 100% owner of silicon products maker Dow Corning, which is currently a 50:50 joint venture between Dow and Corning Incorporated (NYSE:GLW) (Corning, New York). Industrial Info is tracking four active Dow Corning projects worth $29.83 million, including a $9.8 million silicone products unit addition in Suzhou, China.
Industrial Info is tracking 110 Dow Chemical projects worth $8.06 billion. More than half of the total investment value is tied to projects that are in the construction and engineering phases. The remaining $3.38 billion is for projects in their planning phases, where plenty of factors still could increase, decrease or totally eliminate the expected spending.
One of the big-ticket Dow items is the $1.9 billion ethylene unit addition at the company's Oyster Creek facility in Texas. It includes construction of an ethane-fed cracker with a design capacity of 2.6 billion pounds per year. Fluor Corporation (NYSE:FLR) (Irving, Texas), Cajun Industries LLC (Baton Rouge, Louisiana) and JV Industrial Companies (Pasadena, Texas) are involved in the construction, which is set for completion in second-quarter 2017.
One of the DuPont projects being tracked by Industrial Info is the $60 million Sabine River Works ethylene plant expansion, in Orange, Texas. The Orange plant currently can produce 681,000 metric tonnes per year of ethylene. Completion is currently expected in June, 2017.
Solvay Completes Cytec Acquisition
In other merger and acquisition news, Solvay S.A. (Brussels, Belgium) announced it has completed its $5.5 billion acquisition of Cytec Industries Incorporated (Woodland Park, New Jersey), with plans to achieve cost savings and business opportunities in advanced lightweighting materials for the aerospace and automotive industries, as well as specialty chemicals for mining.
Industrial Info is tracking 114 Solvay-related projects worth $1.22 billion, including a $250 million soda ash plant in Alexandria, Egypt; and 17 Cytec projects worth $155.83 million, including a $98.4 million adhesives plant expansion in Wrexham, U.K.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 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.comor visit us online at http://www.industrialinfo.com/.
Leaders of the two companies expect to close the mega-merger in the second half of 2016. To be known as DowDuPont, the new company would have a combined market capitalization of $130 billion, with annual revenue of $83 billion.
One Plus One Equals Three
The company would then separate into three publicly traded businesses--material sciences, agriculture and specialty products. The spinoffs would occur 18-25 months following the merger. "Each of these companies will be able to allocate capital more effectively, apply its powerful innovation more productively, and extend it value-added products and solutions to more customers worldwide," said DuPont Chief Executive Officer (CEO) Edward Breen, who would become CEO of DowDuPont.
The material science company would include performance plastics and materials, with a focus on packaging, automotive applications and construction. Dow CEO Andrew Liveris, who would become chairman of DowDuPont, said Friday the world wants better Food & Beverage packaging. He noted that Sadara Chemical Company, Dow's Middle East joint venture with Saudi Arabian Oil Company (Saudi Aramco) (Dhahran, Saudi Arabia), has met its target to begin producing polyethylene by yearend 2015. Industrial Info is tracking 25 active Sadara projects worth $9.06 billion.
Liveris and Breen said the agriculture company would be a global leader in seed development and crop protection. Industrial Info is tracking DuPont's $35 million expansion of a soybean research facility in Newark, Delaware, which includes a 134,000-square-foot building, two greenhouses, and three high-tech, 60,000-gallon water collection units to expand research in soybeans and other agricultural products.
The specialty products company would encompass electronics and telecommunication, as well as nutrition and health and industrial bio sciences businesses. Solar power materials and biofuels fall under the specialty products tent.
Cost Cutting Ahead
The engineers of the planned merger say it will result in $3 billion in cost-saving synergies. In addition, DuPont announced a global restructuring and plan for 2016 to reduce $700 million in costs in comparison with 2015. The plan will reduce its workforce by 10%, DuPont said, adding it expects sales growth in 2016 to be "challenging." The company had 64,000 employees at the end of 2013.
Dow and DuPont earlier signaled plans to ratchet down capital expenditures. For related information, see October 23, 2015, article - Dow Chemical to Wind Down Capex as Large Projects Brought Online and October 28, 2015, article - DuPont, Huntsman to Slash Capital Spending After Weak Prices, Strong Dollar Slam Third-Quarter 2015 Results.
Dow Corning Ownership
Dow announced separately it will become the 100% owner of silicon products maker Dow Corning, which is currently a 50:50 joint venture between Dow and Corning Incorporated (NYSE:GLW) (Corning, New York). Industrial Info is tracking four active Dow Corning projects worth $29.83 million, including a $9.8 million silicone products unit addition in Suzhou, China.
Industrial Info is tracking 110 Dow Chemical projects worth $8.06 billion. More than half of the total investment value is tied to projects that are in the construction and engineering phases. The remaining $3.38 billion is for projects in their planning phases, where plenty of factors still could increase, decrease or totally eliminate the expected spending.
One of the big-ticket Dow items is the $1.9 billion ethylene unit addition at the company's Oyster Creek facility in Texas. It includes construction of an ethane-fed cracker with a design capacity of 2.6 billion pounds per year. Fluor Corporation (NYSE:FLR) (Irving, Texas), Cajun Industries LLC (Baton Rouge, Louisiana) and JV Industrial Companies (Pasadena, Texas) are involved in the construction, which is set for completion in second-quarter 2017.
One of the DuPont projects being tracked by Industrial Info is the $60 million Sabine River Works ethylene plant expansion, in Orange, Texas. The Orange plant currently can produce 681,000 metric tonnes per year of ethylene. Completion is currently expected in June, 2017.
Solvay Completes Cytec Acquisition
In other merger and acquisition news, Solvay S.A. (Brussels, Belgium) announced it has completed its $5.5 billion acquisition of Cytec Industries Incorporated (Woodland Park, New Jersey), with plans to achieve cost savings and business opportunities in advanced lightweighting materials for the aerospace and automotive industries, as well as specialty chemicals for mining.
Industrial Info is tracking 114 Solvay-related projects worth $1.22 billion, including a $250 million soda ash plant in Alexandria, Egypt; and 17 Cytec projects worth $155.83 million, including a $98.4 million adhesives plant expansion in Wrexham, U.K.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 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.comor visit us online at http://www.industrialinfo.com/.
