DuPont to Split Into Three Companies

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Researched by Industrial Info Resources (Sugar Land, Texas)--Multinational company DuPont de Nemours Incorporated (NYSE:DD) (Wilmington, Delaware) last week said it plans to split into three publicly traded companies by breaking off its Electronics and Water businesses into separate entities.

"Critically, each company will have greater flexibility to pursue their own focused growth strategies, including portfolio enhancing M&A [mergers and acquisition]," said Ed Breen, chief executive officer of DuPont, in a press release regarding the plan.

Among the benefits of the move, DuPont said, is the ability for the core company and the two new businesses "to craft capital allocation to tailor capital allocation strategies to pursue differential strategic growth objectives."

Dupont said it expects to complete the separations within 18 to 24 months.

In the press release, the company discussed the expected areas of focus for each new business:

• The Water business will serve as a "global technology leader" with a portfolio of water filtration and purification solutions that serve components and systems that generate clean water for both industrial and residential use
• DuPont ("New DuPont") will continue to produce a variety of industrial materials, including those for the healthcare sector
• Electronics will provide materials including consumables used in semiconductor-chip manufacturing, among other end-uses. "Electronics will focus on innovation-based growth," the company said, adding the new business unit "will be well positioned to pursue ongoing organic growth initiatives and have flexibility to pursue inorganic growth opportunities."

Industrial Info is tracking nine active and planned capital-spending projects worldwide from DuPont, worth about US$330 million, including two projects in the U.S. related to producing industrial and semiconductor-chip materials, respectively.

Construction of DuPont's US$50 million grassroot plant in Newark, Delaware, which will manufacture polishing discs for use in the production of semiconductors, is expected to wrap up in June. A local unit of FCL Builders Incorporated (Itasca, Illinois) is acting as general contractor for the project, which began construction in late 2022. Subscribers to Industrial Info's Global Market Intelligence (GMI) Industrial Manufacturing Project Database can click here to learn more about the project.

Also underway is a US$75 million modernization and expansion of its Spruance plant in Richmond, Virginia, DuPont's largest manufacturing plant in the world. The plant produces protection and safety materials for consumers as well as military and law enforcement, including three brands: Kevlar (used in body armor), Nomex (used for insulation material for firefighting suits) and Tyvex (used for protecting structures from weather).

The project, which is expected to wrap up in late 2025, entails modernizing several areas of the plant, including production units for the three materials and supporting equipment and electric utilities to add new capacity. Subscribers to the Chemical Processing Project Database can click here to read the detailed project report.

Industrial Info also is tracking global projects from DuPont, which includes a water-related project that is expected to wrap up around July. The US$40 million revamp of its manufacturing plant in Athlone, Ireland will increase production capacity of the company's Membrane Aerated Biofilm Reactor (MABR) modules--which are installed at wastewater treatment plants to improve water quality and increase processing capacity. Click here for the project report.

DuPont has not announced its planned capital expenditures for full-year 2024, but reported US$207 million in capital spending for the first quarter.

Subscribers to Industrial Info's GMI Project and Plant databases can click here for a full list of detailed reports for projects mentioned in this article, and click here for a full list of related plant profiles.

Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).